Question

Swifty Corp. uses the direct method to prepare its statement of cash flows. Swifty trial balances at December 31, 2020 and 2019. are as follows. Debits 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 December 31 2020 2019 $34,700 $31.900 32.800 29,900 31,200 46,800 99,300 94,400 4.500 5.000 249,900 380,000 142,500 173,600 135,600 151,500 4,400 2,600 20,300 61,700 $755,200 $977,400 Credits 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 $1,300 $1,100 16,600 15,100 25,100 15,700 21,000 28,800 5,300 4,600 44,900 20,000 49,700 40,000 9,100 7,500 44,900 64,700 537,300 779,900 $755,200 $977,400 Additional information: 1. Swifty purchased $4.900 in equipment during 2020. 2. Swifty allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative 3. Bad debt expense for 2020 was 54,900, and write-offs of uncollectible accounts totaled $4.700. expenses. Determine what amounts Swifty should report in its statement of cash flows for the year ended December 31, 2020, 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. $ le) Cash paid for selling expenses. $

Answer 1

fx A B С D E 1 2 537,300 1 Sales Revenue Less : Increase in accoounts receivable (net of write offs) Cash Collected from Customers 3 4 7,600 529,700 5 Increase in accoounts receivable (net of write offs) 6 =32800-(29900-4700) 7 8 9 10 11 2 Cost of Goods Sold Less : Decrease in Inventory Purchases Less : Increase in Accounts Payable Cash paid to suppliers 249,900 15,600 234,300 9,400 224,900 12 13 14 15 16 17 3 Interest Expenses Less : Decrease in amortized bond discount Cash paid for interest 4,400 500 3,900 18 19 20 21 22 4 Income Tax Expenses Add : Decrease in Income Tax payable Lees : Increase in feferred tax liability Cash paid for income taxes 20,300 7,800 700 27,400 23 24 25 26 27 28 5 Sellling Expenses Less : Depreciation Less : Bad Debt expenses Cash paid for selling expenses 142,500 500 4,900 137,100 29 30 31 32 33 Depreciation =(16600-15100)*1/3 34 35