Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Blue Corp. uses the direct method to prepare its statement of cash flows. Blue trial balances at December 31, 2020 and 2019, are as follows.
Blue Corp. uses the direct method to prepare its statement of cash flows. Blue trial balances at December 31, 2020 and 2019, are as follows. December 31 Debits 2020 2019 Cash $35,100 $31,900 Accounts receivable 32,900 30,000 Inventory 30,700 47,100 Property, plant, & equipment 100,300 95,300 Unamortized bond discount 4,500 5,000 Cost of goods sold 249,800 383.000 Selling expenses 142.200 171800 General and administrative expenses 137,400 149,900 Interest expense 4,400 2600 Income tax expense 20.500 61.600 $757,800 $978.100 Credits Allowance for doubtful accounts $1.300 $1,100 Accumulated depreciation-plant assets 16.700 15.200 Accounts payable 25.200 15.600 Income taxes payable 21.100 29.200 Deferred tax liability 5,400 4700 8% callable bonds payable 44,900) 20,000 Common stock 50,900 40,000 Paid-in capital in excess of par 9.200 7500 Retained earnings 44,500 64,400 Sales revenue 539.100 790,400 $757,900 $979.100 Additional information: 1. Blue purchased $5,000 in equipment during 2020. 2. Blue allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. 3. Bad debt expense for 2020 was $5,000, and write-offs of uncollectible accounts totaled $4,800. Determine what amounts Blue should report in its statement of cash flows for the year ended December 31, 2020, for the following items. (a) Cash collected from customers. S $36200 (b) Cash paid to suppliers. 223800 (c) Cash paid for interest. 4400 (d) Cash paid for income taxes. 284000 (e) Cash paid for selling expenses. 336400
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started