Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Pina Corp. uses the direct method to prepare its statement of cash flows. Pina trial balances at December 31, 2017 and 2016, are as follows
Pina Corp. uses the direct method to prepare its statement of cash flows. Pina trial balances at December 31, 2017 and 2016, are as follows December 31 Debits 2017 2016 $34,700 $31,700 29,900 46,600 95,700 5,000 380,000 171,900 149,800 2,600 61,800 $754,400 $975,000 as Accounts receivable Inventory Property, plant, & equipment Unamortized bond discount Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense 33,100 30,600 100,800 4,500 247,800 140,900 137,300 4,400 20,300 $1,100 15,100 15,400 29,300 4,700 20,000 40,000 7,500 65,200 776,700 $754,400 $975,000 Allowance for doubtful accounts Accumulated depreciation-plant assets Accounts payable Income taxes payable Deferred tax liability 8% callable bonds payable Common stock Paid-in capital in excess of par Retained earnings Sales revenue $1,300 16,600 25,100 21,200 5,400 44,700 49,700 9,000 44,700 536,700 Additional information: 1. Pina purchased $5,100 in equipment during 2017 2. Pina 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 Pina 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started