Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pharoah Corp. uses the direct method to prepare its statement of cash flows. Pharoah trial balances at December 31, 2020 and 2019. are as follows,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Pharoah Corp. uses the direct method to prepare its statement of cash flows. Pharoah trial balances at December 31, 2020 and 2019. are as follows, Income tax expense \begin{tabular}{lrr} \hline Credits & & \\ \hline Allowance for doubtful accounts & $1,300 & $1,200 \\ Accumulated depreciation-plant assets & 16,300 & 14,800 \\ Accounts payable & 24,800 & 15,600 \\ Income taxes payable & 21,000 & 29,000 \\ Deferred tax liability & 5,400 & 4,700 \\ 8% callable bonds payable & 44,800 & 20,000 \\ Common stock & 50,200 & 40,000 \\ Paid-in capital in excess of par & 9,000 & 7,500 \\ Retained earnings & 45,000 & 64,300 \\ Sales revenue & 538,100 & 780,800 \\ \hline \end{tabular} Additional information: 1. Pharoah purchased $5,000 in equipment during 2020 . 2. Pharoah 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 $4,900. Determine what amounts Pharoah should report in its statement of cash flows for the year ended December 31, 2020, for the following items. (a) Cash collected from customers. \$ (b) Cash paid to suppliers. $ Determine what amounts Pharoah should report in its statement of cash flows for the year ended December 31, 2020, 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What was the influence of the individual experimenter?

Answered: 1 week ago

Question

=+ What scenarios could draw the audience in?

Answered: 1 week ago

Question

=+ What graphics could stop the viewer?

Answered: 1 week ago