Question
Exercise 23-9 Los Lobos Corp. uses the direct method to prepare its statement of cash flows. Relevant balances for Los Lobos at December 31, 2014
Exercise 23-9 Los Lobos Corp. uses the direct method to prepare its statement of cash flows. Relevant balances for Los Lobos at December 31, 2014 and 2013, are as follows. December 31 Debits 2014 2013 Cash $34,760 $32,430 Accounts receivable 32,710 29,640 Inventory 31,330 46,580 Property, plant, & equipment 103,190 94,100 Unamortized bond discount 4,050 5,390 Cost of goods sold 252,660 379,110 Selling expenses 141,890 171,770 General and administrative expenses 137,370 151,410 Interest expense 4,120 2,870 Income tax expense 20,010 61,570 $762,090 $974,870 Credits Allowance for doubtful accounts $1,770 $1,290 Accumulated depreciationplant assets 16,971 13,530 Accounts payable 25,390 17,070 Income taxes payable 21,090 29,380 Deferred income taxes 5,570 4,000 8% callable bonds payable 44,630 21,110 Common stock 50,020 41,300 Paid-in capital in excess of par 9,570 7,000 Retained earnings 44,330 64,430 Sales revenue 542,749 775,760 $762,090 $974,870 Additional information: 1. Los Lobos purchased $9,090 in equipment during 2014. 2. Los Lobos allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. 3. Bad debt expense for 2014 was $5,100, and write-offs of uncollectible accounts totaled $4,620. Determine what amounts Los Lobos should report in its statement of cash flows for the year ended December 31, 2014, 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.
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