Exercise 9.15

Accrual to cash flows For each of the following items, calculate the cash sources or cash uses that should be recognized on the statement of cash flows for Baldin Co. for the year ended December 31, 2019

a. Sales on account (all are collectible) amounted to $560,000, and accounts receivable decreased by $34,000. How much cash was collected from customers?

b. Income tax expense for the year was $118,000, and income taxes payable decreased by $44,000. How much cash was paid for income taxes?

c. Cost of goods sold amounted to $338,000, accounts payable increased by $49,000, and inventories increased by $34,000. How much cash was paid to suppliers?

d. The net book value of buildings increased by $290,000. No buildings were sold, and depreciation expense for the year was $130,000. How much cash was paid to purchase buildings?