question los lobos corp uses the direct method to prepare its statementof cash flows 4293905
Question
Los Lobos Corp. uses the direct method to prepare its statementof cash flows. Relevant balances for Los Lobos at December 31, 2014and 2013, are as follows.
Debits |
2014 |
2013 |
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Cash |
$35,150 |
$32,230 |
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Accounts receivable |
32,800 |
30,020 |
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Inventory |
30,640 |
47,240 |
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Property, plant, &equipment |
104,750 |
98,000 |
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Unamortized bond discount |
4,410 |
5,150 |
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Cost of goods sold |
250,070 |
379,010 |
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Selling expenses |
141,520 |
171,800 |
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General and administrativeexpenses |
137,570 |
151,860 |
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Interest expense |
4,140 |
2,930 |
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Income tax expense |
20,100 |
60,720 |
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$761,150 |
$978,960 |
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Credits |
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Allowance for doubtfulaccounts |
$1,810 |
$1,190 |
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Accumulated depreciation—plantassets |
16,494 |
13,020 |
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Accounts payable |
25,360 |
17,310 |
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Income taxes payable |
20,400 |
29,280 |
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Deferred income taxes |
5,030 |
4,010 |
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8% callable bonds payable |
44,860 |
20,520 |
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Common stock |
55,170 |
41,300 |
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Paid-in capital in excess ofpar |
9,110 |
7,980 |
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Retained earnings |
44,310 |
64,250 |
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Sales revenue |
538,606 |
780,100 |
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$761,150 |
$978,960 |
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Additionalinformation: |
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1. Los Lobospurchased $6,750 in equipment during 2014. |
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2. Los Lobosallocated one-third of its depreciation expense to selling expensesand the remainder to general and administrative expenses. |
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3. Bad debtexpense for 2014 was $5,340, and write-offs of uncollectibleaccounts totaled $4,720. |
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Determine what amounts Los Lobos should report in its statement ofcash flows for the year ended December 31, 2014, for the followingitems. |
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A) Cash collected fromcustomers. |
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B) Cashpaid to suppliers. |
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C) Cashpaid for interest. |
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D) Cashpaid for income taxes. |
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E) Cashpaid for selling expenses. |
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