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Novak Corp. uses the direct method to prepare its statement of cash flows. Novak trial balances at December 31, 2020 and 2019, are as follows.
Novak Corp. uses the direct method to prepare its statement of cash flows. Novak trial balances at December 31, 2020 and 2019, are as follows. December 31 Debits 2020 2019 Cash $35,100 $32,300 Accounts receivable 33,200 30,000 Inventory 31,200 47,400 Property, plant, & equipment 100,300 95,200 Unamortized bond discount 4,600 5,100 Cost of goods sold 251,100 382,800 Selling expenses 142,300 173,000 General and administrative expenses 149,800 Interest expense 4,300 2,600 Income tax expense 20,200 61,000 $760,100 $979,200 Credits Allowance for doubtful accounts $1,300 $1,100 Accumulated depreciation-plant assets 16,400 14,900 Accounts payable 25,000 15,400 Income taxes payable 21,100 29,300 Deferred tax liability 5,300 4,600 8% callable bonds payable 45,400 20,000 Common stock 50,100 40,000 Paid-in capital in excess of par 9,200 7,500 Retained earnings 45,200 65,200 Sales revenue 541,100 781,200 $760,100 $979,200 Additional information: 1. Novak purchased $5,100 in equipment during 2020. 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 2020 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, 2020, for the following items. (a) Cash collected from customers. $ 533,100 (b) Cash paid to suppliers. $ 225,300 (c) Cash paid for interest. $ 3,800 (d) Cash paid for income taxes. $ 27,700 (e) Cash paid for selling expenses. $ 146,900
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