2024 – Los Lobos Corp uses the direct method to prepare its statement of
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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