Question
Sheridan Corp. uses the direct method to prepare its statement of cash flows. Sheridan trial balances at December 31, 2020 and 2019, are as follows.
Sheridan Corp. uses the direct method to prepare its statement of cash flows. Sheridan trial balances at December 31, 2020 and 2019, are as follows.
December 31 | ||||
Debits | 2020 | 2019 | ||
Cash | $34,800 | $32,200 | ||
Accounts receivable | 33,300 | 29,800 | ||
Inventory | 31,300 | 47,100 | ||
Property, plant, & equipment | 99,800 | 94,800 | ||
Unamortized bond discount | 4,600 | 5,100 | ||
Cost of goods sold | 251,100 | 379,700 | ||
Selling expenses | 142,400 | 172,000 | ||
General and administrative expenses | 136,400 | 151,700 | ||
Interest expense | 4,400 | 2,600 | ||
Income tax expense | 20,200 | 60,900 | ||
$758,300 | $975,900 | |||
Credits | ||||
Allowance for doubtful accounts | $1,300 | $1,200 | ||
Accumulated depreciationplant assets | 16,500 | 15,000 | ||
Accounts payable | 25,200 | 15,600 | ||
Income taxes payable | 21,200 | 28,800 | ||
Deferred tax liability | 5,400 | 4,700 | ||
8% callable bonds payable | 45,100 | 20,000 | ||
Common stock | 50,300 | 40,000 | ||
Paid-in capital in excess of par | 9,100 | 7,500 | ||
Retained earnings | 44,700 | 64,200 | ||
Sales revenue | 539,500 | 778,900 | ||
$758,300 | $975,900 |
Additional information:
1. | Sheridan purchased $5,000 in equipment during 2020. | |
2. | Sheridan 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 $4,900, and write-offs of uncollectible accounts totaled $4,800. |
Determine what amounts Sheridan 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. | $ |
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