Question
Windsor Corp. uses the direct method to prepare its statement of cash flows. Windsor trial balances at December 31, 2017 and 2016, are as follows.
Windsor Corp. uses the direct method to prepare its statement of cash flows. Windsor trial balances at December 31, 2017 and 2016, are as follows.
December 31
Debits
2017
2016
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.
Windsor purchased $5,000in equipment during 2017.2.
Windsor 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 $4,900, and write-offs of uncollectible accounts totaled$4,800.
Determine what amounts Windsor 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.
$
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