Question
Exercise 23-9 Splish Corp. uses the direct method to prepare its statement of cash flows. Splish trial balances at December 31, 2017 and 2016, are
Exercise 23-9 Splish Corp. uses the direct method to prepare its statement of cash flows. Splish trial balances at December 31, 2017 and 2016, are as follows. December 31 Debits 2017 2016 Cash $35,200 $32,000 Accounts receivable 33,000 29,900 Inventory 31,300 47,000 Property, plant, & equipment 99,500 94,500 Unamortized bond discount 4,500 5,000 Cost of goods sold 248,500 383,100 Selling expenses 141,200 171,000 General and administrative expenses 137,900 152,000 Interest expense 4,400 2,600 Income tax expense 20,400 60,800 $755,900 $977,900 Credits Allowance for doubtful accounts $1,300 $1,200 Accumulated depreciationplant assets 16,300 14,800 Accounts payable 24,800 15,600 Income taxes payable 21,000 29,000 Deferred tax liability 5,400 4,700 8% callable bonds payable 44,800 20,000 Common stock 50,200 40,000 Paid-in capital in excess of par 9,000 7,500 Retained earnings 45,000 64,300 Sales revenue 538,100 780,800 $755,900 $977,900 Additional information: 1. Splish purchased $5,000 in equipment during 2017. 2. Splish allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. 3. Bad debt expense for 2017 was $5,000, and write-offs of uncollectible accounts totaled $4,900. Determine what amounts Splish should report in its statement of cash flows for the year ended December 31, 2017, 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. $
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