Question
Pearl SA uses the direct method to prepare its statement of cash flows. Pearl's trial balances at December 31, 2022 and 2021, are as follows.
Pearl SA uses the direct method to prepare its statement of cash flows. Pearl's trial balances at December 31, 2022 and 2021, are as follows.
December 31 | ||||
---|---|---|---|---|
Debits | 2022 | 2021 | ||
Cash | R$36,000 | R$34,000 | ||
Accounts receivable | 36,000 | 30,000 | ||
Inventory | 31,000 | 49,000 | ||
Property, plant, & equipment | 100,000 | 95,000 | ||
Cost of goods sold | 254,000 | 384,000 | ||
Selling expenses | 147,500 | 176,000 | ||
General and administrative expenses | 144,000 | 153,300 | ||
Interest expense | 4,300 | 2,600 | ||
Income tax expense | 20,400 | 61,200 | ||
R$773,200 | R$985,100 | |||
| ||||
Credits | ||||
Allowance for doubtful accounts | R$1,400 | R$1,400 | ||
Accumulated depreciation | 17,000 | 14,000 | ||
Accounts payable | 28,000 | 17,300 | ||
Income taxes payable | 23,500 | 29,600 | ||
Deferred income taxes | 6,000 | 5,300 | ||
8% callable bonds payable | 40,500 | 15,000 | ||
Share capitalordinary | 50,000 | 40,000 | ||
Share premiumordinary | 9,100 | 7,500 | ||
Retained earnings | 44,700 | 67,600 | ||
Sales revenue | 553,000 | 787,400 | ||
R$773,200 | R$985,100 |
Additional information:
1. | Pearl purchased R$5,000 in equipment during 2022. | |
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 2022 was R$5,000, and write-offs of uncollectible accounts totaled R$5,000. | |
4. | Interest expense includes R$500 of discount amortization. |
Determine what amounts Pearl should report in its statement of cash flows for the year ended December 31, 2022, for the following items.
Determine what amounts Pearl should report in its statement of cash flows for the year ended December 31, 2022, for the following items. (a) Cash collected from customers. R $ 559000 (b) Cash paid to suppliers. R$ 225300 (c) Cash paid for interest. R$ 3800 (d) Cash paid for income taxes. R$ 25800 (e) Cash paid for selling expenses. R$ 147,500Step by Step Solution
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