2024 – Los Lobos Corp uses the direct method to prepare its statement of cash flows Relevant balances

Los Lobos Corp. Uses The Direct Method To Prepare Its Statement Of Cash Flows. Relevant Balances For Los Lobos At… – 2024

Los Lobos Corp. uses the direct method to prepare its statement of cash flows. Relevant balances for Los Lobos at December 31, 2014 and 2013, are as follows.

   
December 31
Debits  
2014
 
2013
Cash  
$35,380
 
$32,380
Accounts receivable  
32,810
 
29,790
Inventory  
30,560
 
47,040
Property, plant, & equipment  
109,810
 
93,100
Unamortized bond discount  
4,400
 
5,050
Cost of goods sold  
248,660
 
379,830
Selling expenses  
141,770
 
172,770
General and administrative expenses  
136,500
 
151,550
Interest expense  
4,410
 
2,360
Income tax expense  
20,900
 
61,580
   
$765,200
 
$975,450
         
Credits        
Allowance for doubtful accounts  
$1,730
 
$1,040
Accumulated depreciation—plant assets  
17,197
 
13,750
Accounts payable  
25,160
 
17,050
Income taxes payable  
21,200
 
29,120
Deferred income taxes  
5,460
 
4,490
8% callable bonds payable  
44,610
 
20,670
Common stock  
58,220
 
42,700
Paid-in capital in excess of par  
9,300
 
7,600
Retained earnings  
44,910
 
64,210
Sales revenue  
537,413
 
774,820
   
$765,200
 
$975,450

Additional information:

1.   Los Lobos purchased $16,710 in equipment during 2014.
2.   Los Lobos allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses.
3.   Bad debt expense for 2014 was $4,640, and write-offs of uncollectible accounts totaled $3,950.

Determine what amounts Los Lobos should report in its statement of cash flows for the year ended December 31, 2014, for the following items.

(a)   Cash collected from customers.  
$

[removed]
(b)   Cash paid to suppliers.  
$

[removed]
(c)   Cash paid for interest.  
$

[removed]
(d)   Cash paid for income taxes.  
$

[removed]
(e)   Cash paid for selling expenses.  
$

[removed]

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