Additional information: Determine what amounts Los Lobos should report in its st

Question

Additional information:

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

b. Cash paid to suppliers.

c. Cash paid for interest.

d. Cash paid for income taxes.

e. Cash paid for selling expenses.

1. Los Lobos purchased $10,410 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 $5,070, and write-offs of uncollectible accounts totaled $4,550.

Explanation / Answer

a) Cash collected from customers opening accounts receivable 31620 Add sales 537869 less closing accounts receivable 33170 Cash collected from customers 536319 b) Cash paid to suppliers Purchases = Cost of goods sold - opening inventory + closing inventory                       = 248400 - 46740 + 30780                       = 232440 opening accounts payable 16960 Add purchases 232440 less closing accounts payable 25490 Cash paid to suppliers 223910 c) Cash paid for interest 4100 d) Cash paid for income taxes opening taxes payable 28740 Add invome tax 20560 less closing taxes payable 21020 Cash paid for income taxes 28280 e) Cash paid for selling expenses Depriciation expense for the year 3141 (16321-13180) 1/3rd of depriciation = 1047 Selling expenses 141460 Less depriciation allocated 1047 Cash paid for selling expenses 140413

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.