Please answer (a) and (e) CORRECTLY for a thumbs-up. The answer to (e) is also n

Question

Please answer (a) and (e) CORRECTLY for a thumbs-up. The answer to (e) is also not 140710

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 ebit Cash Accounts receivable Inventory Property, plant, & equipment Unamortized bond discount Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense 2014 2013 $35,080 $32,290 29,800 47,100 97,800 5,260 379,100 172,330 150,700 2,310 61,340 $761,630 $978,030 33,350 30,580 103,570 4,280 250,180 141,900 137,980 3,840 20,870

Explanation / Answer

a. Sales revenue                                                                          543810

Deduct: Increase in accounts receivable, net of write-offs

[33350 – (29800 – 4430)]                                                             7980

Cash collected from customers 535830

(e) Selling expenses                                                                            141900                                               

     Deduct: Depreciation (3570* x 1/3)                                  1190

        Bad debts expense                                                       4980      6170                                       

Cash paid for selling expenses                                                           135730

*(17420- 13850) =3570

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