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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

     

Cash

$35,150

$32,230

     

Accounts receivable

32,800

30,020

     

Inventory

30,640

47,240

     

Property, plant, &equipment

104,750

98,000

     

Unamortized bond discount

4,410

5,150

     

Cost of goods sold

250,070

379,010

     

Selling expenses

141,520

171,800

     

General and administrativeexpenses

137,570

151,860

     

Interest expense

4,140

2,930

     

Income tax expense

20,100

60,720

     

 

$761,150

$978,960

     

 

 

 

     

Credits

 

 

     

Allowance for doubtfulaccounts

$1,810

$1,190

     

Accumulated depreciation—plantassets

16,494

13,020

     

Accounts payable

25,360

17,310

     

Income taxes payable

20,400

29,280

     

Deferred income taxes

5,030

4,010

     

8% callable bonds payable

44,860

20,520

     

Common stock

55,170

41,300

     

Paid-in capital in excess ofpar

9,110

7,980

     

Retained earnings

44,310

64,250

     

Sales revenue

538,606

780,100

     

 

$761,150

$978,960

     

Additionalinformation:

     

 

     

1. Los Lobospurchased $6,750 in equipment during 2014.

     

2. Los Lobosallocated one-third of its depreciation expense to selling expensesand the remainder to general and administrative expenses.

     

3. Bad debtexpense for 2014 was $5,340, and write-offs of uncollectibleaccounts totaled $4,720.

     

 

 

 

     

Determine what amounts Los Lobos should report in its statement ofcash flows for the year ended December 31, 2014, for the followingitems.

     

 

 

 

 

A) Cash collected fromcustomers.

 

 

 

B) Cashpaid to suppliers.

 

 

 

 

 

 

 

 

 

C) Cashpaid for interest.

 

 

 

 

 

 

 

 

 

D) Cashpaid for income taxes.

 

 

 

 

 

 

 

 

 

E) Cashpaid for selling expenses.

 

 

 

 

 

 

 

 

 

           

 

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