Question
Novak Corp. uses the direct method to prepare its statement of cash flows. Novak trial balances at December 31, 2017 and 2016, are as follows.
Novak Corp. uses the direct method to prepare its statement of cash flows. Novak trial balances at December 31, 2017 and 2016, are as follows.
December 31
Debits2017
2016
Cash$35,100
$32,100
Accounts receivable33,000
30,100
Inventory30,900
47,500
Property, plant, & equipment99,300
94,200
Unamortized bond discount4,500
5,000
Cost of goods sold249,900
381,900
Selling expenses140,500
172,000
General and administrative expenses137,400
150,500
Interest expense4,300
2,600
Income tax expense20,400
60,800
$755,300
$976,700
CreditsAllowance for doubtful accounts$1,300
$1,100
Accumulated depreciationplant assets16,600
15,100
Accounts payable25,100
15,500
Income taxes payable21,200
29,300
Deferred tax liability
5,200
4,500
8% callable bonds payable44,600
20,000
Common stock49,900
40,000
Paid-in capital in excess of par9,200
7,500
Retained earnings44,900
64,600
Sales revenue537,300
779,100
$755,300
$976,700
Additional information:
1.Novak purchased $5,100in equipment during 2017.2.Novak 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$4,800.
Determine what amounts Novak should report in its statement of cash flows for the year ended December 31, 2017, for the following items.
(a)Cash collected from customers.$
(b)Cash paid to suppliers.$
(c)Cash paid for interest.$
(d)Cash paid for income taxes.$
(e)Cash paid for selling expenses.$
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