Flax uses the direct method to prepare its statement of cash flows. Flaxs trial balances at Dec. 31, 2019 are as follows

Dec. 31 Dec 31

2019 2018 2019 2018

Debits Credits________________________________

Cash P 35,000 P 32,000 Allow for Uncollec. Accnts. P1,300 P 1,100

Accounts receivable 33,000 30,000 Accumulated depreciation 16,500 15,000

Inventory 31,000 47,000 Trade Accounts Payable 25,000 17,500

Prop. , Plant and Equip. 100,000 95,000 Income Taxes Payable 21,000 27,100

Unamortized bond discount 4,500 5,000 Deferred Income Tax 5,300 4,000

Cost of Goods Sold 250,000 380,000 8% Callable Bonds payable 45,000 20,000

Selling Expenses 141,500 172,300 Common Stock 50,000 40,000

Gen. & Admi. Expenses 137,000 151,000 Additional paid-in Capital 9,100 7,500

Interest Expense 4,300 2,600 Retained Earnings 44,700 64,600

Income Tax Expense 20,400 61,200 Sales 538,800 778,700

P 756,700 P 976,100 P 756,700 P 976,100

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• Flax purchased P 5,000 in equipment during 2019.
• Flax allocated one third of its depreciation expense to selling expenses and the remainder to general and administrative expenses

What amounts should Flax report in its statement of cash flows for the year ended Dec. 31, 2019, for the following : 1. Cash collected from customers? 2. Cash paid for goods to be sold? 3. Cash paid for interest 4. Cash paid for income taxes ? 5. Cash paid for selling expenses SHOW SOLUTION