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Buffalo Corp. uses the direct method to prepare its statement of cash flows. Buffalo trial balances at December 31, 2020 and 2019, are as follows.
Buffalo Corp. uses the direct method to prepare its statement of cash flows. Buffalo trial balances at December 31, 2020 and 2019, are as follows. Debits Cash December 31 2020 2019 $34.800 $32,300 32.800 29.800 30.900 47.000 100.800 95.900 4.600 5.100 Accounts receivable Inventory Property, plant, & equipment Unamortized bond discount Cost of goods sold Selling expenses General and administrative expenses Interest expense 252,100 378.200 142.700 172.900 136.800 152,300 4.300 2,600 Income tax expense 20.400 60.600 $760,200 $976,700 Credits $1,300 $1,100 16,600 15.100 25.300 15,600 21,000 29,000 5.200 Allowance for doubtful accounts Accumulated depreciation-plant assets Accounts payable Income taxes payable Deferred tax liability 8% callable bonds payable Common stock Paid-in capital in excess of par Retained earnings Sales revenue 4.500 20,000 44,500 49.700 40,000 9.000 7.500 44.400 64,600 543,200 779,300 $760,200 $976,700 Additional information: 1 2. Buffalo purchased $4.900 in equipment during 2020. Buffalo 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 $4.900, and write-offs of uncollectible accounts totaled $4.700. Additional information: 1 2. Buffalo purchased $4.900 in equipment during 2020. Buffalo allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. Bad debt expense for 2020 was $4.900, and write-offs of uncollectible accounts totaled $4.700. 3. Determine what amounts Buffalo should report in its statement of cash flows for the year ended December 31, 2020, for the following items. (a) Cash collected from customers. $ (b) Cash paid to suppliers $ (c) Cash paid for interest. $ (d) ( Cash paid for income taxes. $ le) Cash paid for selling expenses. $ $
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