Question
Pearl Corp. uses the direct method to prepare its statement of cash flows. Pearl trial balances at December 31, 2017 and 2016, are as follows.
Pearl Corp. uses the direct method to prepare its statement of cash flows. Pearl trial balances at December 31, 2017 and 2016, are as follows. December 31 Debits 2017 2016 Cash $35,100 $31,800 Accounts receivable 32,900 30,000 Inventory 30,700 47,100 Property, plant, & equipment 100,300 95,300 Unamortized bond discount 4,500 5,000 Cost of goods sold 249,800 383,000 Selling expenses 142,200 171,800 General and administrative expenses 137,400 149,900 Interest expense 4,400 2,600 Income tax expense 20,500 61,600 $757,800 $978,100 Credits Allowance for doubtful accounts $1,300 $1,100 Accumulated depreciationplant assets 16,700 15,200 Accounts payable 25,200 15,600 Income taxes payable 21,100 29,200 Deferred tax liability 5,400 4,700 8% callable bonds payable 44,900 20,000 Common stock 50,300 40,000 Paid-in capital in excess of par 9,200 7,500 Retained earnings 44,600 64,400 Sales revenue 539,100 780,400 $757,800 $978,100 Additional information: 1. Pearl purchased $5,000 in equipment during 2017. 2. Pearl 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 Pearl 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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