Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Current Attempt in Progress Blossom Corp. uses the direct method to prepare its statement of cash flows. Blossom trial balances at December 31, 2020 and

Current Attempt in Progress Blossom Corp. uses the direct method to prepare its statement of cash flows. Blossom trial balances at December 31, 2020 and 2019, are as follows. December 31 Debits 2020 2019 Cash $34,700 $31,700 Accounts receivable 32,700 29,800 Inventory 30,900 46,700 Property, plant, & equipment 99,800 94,800 Unamortized bond discount 4,500 5,000 Cost of goods sold 248,600 381,400 Selling expenses 142,800 170,600 General and administrative expenses 137,900 150,100 Interest expense 4,400 2,600 Income tax expense 20,400 61,200 $756,700 $973,900 Credits Allowance for doubtful accounts $1,400 $1,000 Accumulated depreciation-plant assets 16,500 15,000 Accounts payable 25,200 15,700 Income taxes payable 20,800 28,900 Deferred tax liability 5,300 4,600 8% callable bonds payable 45,000 20,000 Common stock 49,900 40,000 Paid-in capital in excess of par 9,200 7,500 Retained earnings 45,000 64,800 Sales revenue 538,400 776,400 $756,700 $973,900 Additional information: 1. Blossom purchased $5,000 in equipment during 2020. 2. Blossom 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 $4,600. Determine what amounts Blossom 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. $ (e) Cash paid for selling expenses. $ +A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Effective Controller In The 21st Century Accounting Strategies For Business Management

Authors: Yanyong Thammatucharee

1st Edition

1439217424, 978-1439217429

More Books

Students also viewed these Accounting questions