Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

$

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_2

Step: 3

blur-text-image_3

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

Excel Applications For Accounting Principles

Authors: Gaylord SmithBruce Walz

4th Edition

1133388027, 9781133388029

More Books

Students also viewed these Accounting questions

Question

What else could it do to cope with demand fluctuations?

Answered: 1 week ago