Question
Tamarisk SA uses the direct method to prepare its statement of cash flows. Tamarisk's trial balances at December 31, 2022 and 2021, are as follows.
Tamarisk SA uses the direct method to prepare its statement of cash flows. Tamarisk's trial balances at December 31, 2022 and 2021, are as follows.
December 31 | ||||
---|---|---|---|---|
Debits | 2022 | 2021 | ||
Cash | R$40,000 | R$32,000 | ||
Accounts receivable | 34,000 | 32,000 | ||
Inventory | 32,000 | 48,000 | ||
Property, plant, & equipment | 102,000 | 97,000 | ||
Cost of goods sold | 259,000 | 381,000 | ||
Selling expenses | 142,500 | 173,000 | ||
General and administrative expenses | 139,000 | 152,300 | ||
Interest expense | 4,300 | 2,600 | ||
Income tax expense | 20,400 | 61,200 | ||
R$773,200 | R$979,100 | |||
| ||||
Credits | ||||
Allowance for doubtful accounts | R$1,400 | R$1,600 | ||
Accumulated depreciation | 17,400 | 14,400 | ||
Accounts payable | 25,500 | 17,800 | ||
Income taxes payable | 24,000 | 29,800 | ||
Deferred income taxes | 5,400 | 4,700 | ||
8% callable bonds payable | 40,500 | 15,000 | ||
Share capitalordinary | 50,000 | 40,000 | ||
Share premiumordinary | 9,100 | 7,500 | ||
Retained earnings | 44,700 | 64,600 | ||
Sales revenue | 555,200 | 783,700 | ||
R$773,200 | R$979,100 |
Additional information:
1. | Tamarisk purchased R$5,000 in equipment during 2022. | |
2. | Tamarisk 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$5,200. | |
4. | Interest expense includes R$500 of discount amortization. |
Determine what amounts Tamarisk should report in its statement of cash flows for the year ended December 31, 2022, for the following items.
(a) | Cash collected from customers. | R$enter an amount in brazilian reals | ||
---|---|---|---|---|
(b) | Cash paid to suppliers. | R$enter an amount in brazilian reals | ||
(c) | Cash paid for interest. | R$enter an amount in brazilian reals | ||
(d) | Cash paid for income taxes. | R$enter an amount in brazilian reals | ||
(e) | Cash paid for selling expenses. | R$ |
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