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 Cash Accounts receivable Inventory Property, plant, & equipment Unamortized bond discount Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense 2014 2013 $34,660 $32,230 29,560 47,030 95,000 5,360 250,930 380,310 141,950 171,040 137,040 151,060 2,220 61,540 $762,410 $975,350 33,090 31,120 104,210 4,360 4,440 20,610 Credits Allowance for doubtful accounts Accumulated depreciation-plant assets Accounts payable Income taxes payable Deferred income taxes 890 callable bonds payable Common stock Paid-in capital in excess of par Retained earnings Sales revenue $1,260 13,190 16,620 21,390 28,750 4,320 44,940 21,140 38,300 7,050 64,200 541,919 780,520 $762,410 $975,350 $1,610 16,631 25,050 5,250 52,760 8,600 44,260