Determining Operating Cash Flows—Direct Method Adjusted trial balances for Garboz Company, an industrial recycler, at December 31, 2020, and 2019, follow. Debits, December 31 2020 2019 Cash $31,500 $28,800 Accounts receivable 29,700 27,000 Inventory 27,900 43,200 Property, plant, and equipment 90,000 85,500 Discount on bonds payable 4,050 4,500 Cost of goods sold 225,000 342,000 Selling expenses 127,350 154,800 General and administrative expenses 123,300 136,170 Interest expense 3,870 2,340 Income tax expense 18,360 55,080 Total debits $681,030 $878,490 Credits, December 31 2020 2019 Allowance for doubtful accounts $ 1,170 $ 990 Accumulated depreciation 14,850 13,500 Trade accounts payable 22,500 15,750 Income taxes payable 18,900 24,390 Deferred income tax liability 4,770 4,140 Callable bonds payable, 8% 40,500 18,000 Common stock 45,000 36,000 Additional paid-in capital 8,190 6,750 Retained earnings 40,230 58,140 Sales 484,920 700,830 Total credits $681,030 $878,490 Additional information 1. Purchased $4,500 of equipment in 2020. 2. Allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. 3. Assume no accounts receivable were written off or recovered during the year. Required What amounts should Garboz report in its statement of cash flows for the year ended December 31, 2020, for the following? Note: Do not use negative signs with your answers. a. Cash collected from customers Answer b. Cash paid to suppliers Answer c. Cash paid for interest Answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Determining Operating Cash Flows—Direct Method

Adjusted trial balances for Garboz Company, an industrial recycler, at December 31, 2020, and 2019, follow.

Debits, December 31	2020	2019
Cash	$31,500	$28,800
Accounts receivable	29,700	27,000
Inventory	27,900	43,200
Property, plant, and equipment	90,000	85,500
Discount on bonds payable	4,050	4,500
Cost of goods sold	225,000	342,000
Selling expenses	127,350	154,800
General and administrative expenses	123,300	136,170
Interest expense	3,870	2,340
Income tax expense	18,360	55,080
Total debits	$681,030	$878,490
Credits, December 31	2020	2019
Allowance for doubtful accounts	$ 1,170	$ 990
Accumulated depreciation	14,850	13,500
Trade accounts payable	22,500	15,750
Income taxes payable	18,900	24,390
Deferred income tax liability	4,770	4,140
Callable bonds payable, 8%	40,500	18,000
Common stock	45,000	36,000
Additional paid-in capital	8,190	6,750
Retained earnings	40,230	58,140
Sales	484,920	700,830
Total credits	$681,030	$878,490

Additional information

1. Purchased $4,500 of equipment in 2020.

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

3. Assume no accounts receivable were written off or recovered during the year.

Required

What amounts should Garboz report in its statement of cash flows for the year ended December 31, 2020, for the following?

Note: Do not use negative signs with your answers.

a. Cash collected from customers	Answer
b. Cash paid to suppliers	Answer
c. Cash paid for interest	Answer
d. Cash paid for income taxes	Answer
e. Cash paid for selling expenses	Answer

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