ebi Cash Accounts receivable Inventory Property, plant, & equipment Unamortized
ID: 2588823 • Letter: E
Question
ebi 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 2017 2016 $34,700 31,700 29,800 46,700 94,800 5,000 381,400 170,600 150,100 2,600 61,200 $756,700 $973,900 32,700 30,900 99,800 4,500 248,600 142,800 137,900 4,400 20,400 Allowance for doubtful accounts Accumulated depreciation-plant assets Accounts payable Income taxes payable Deferred tax liability 8% callable bonds payable Common stock Paid-in capital in excess of par Retained earnings Sales revenue $1,000 15,000 15,700 28,900 4,600 20,000 40,000 7,500 64,800 776,400 $756,700 $973,900 $1,400 16,500 25,200 20,800 5,300 45,000 49,900 9,200 45,000 538,400 Additional information 1. Novak purchased $5,000 in equipment during 2017 2. Novak allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. 3. Bad debt expense for 2017 was $5,000, and write-offs of uncollectible accounts totaled $4,600 Determine what amounts Novak should report in its statement of cash flows for the year ended December 31, 2017, for the following items. (a) Cash collected from customers. (b) Cash paid to suppliers. (c) Cash paid for interest. 530900 232800 3800 (d) Cash paid for income taxes. 12300 (e) Cash paid for selling expenses.Explanation / Answer
b. Cash paid to suppliers:
Cost of goods sold $248600
Decrease in inventory ($15800)
Purchases $232800
Increase in accounts payable ($9500)
Cash paid to suppliers $223300.
c. Cash paid for interest expense
Interest expense $4400
Decrease in unamortised bond discount ($500)
Cash paid for interest expense $3900
d. Cash paid for income taxes
Income tax expense $20400
Decrease in income taxes payable $8100
Increase in deffered tax liability ($700)
Cash paid for income taxes $27800
e. Cash paid for selling expenses
Selling expense $142800
Depreciation($1500 * 1/3) ($500)
Baddebt expense ($5000)
Cash paid for selling expense $137300.
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