Determining Operating Cash Flows-Direct MethodAdjusted trial balances for Garboz Company, an industrial recycler, at December 31, 2020, and 2019, follow.Debits, December 3120202019Cash$42.000$38,400Accounts receivable39,60036.000Inventory37.20056,400Property. plant, and equipment120,000114,000Discount on bonds payable5,4006,000Cost of goods sold300,000456.000Selling expenses169,800206,400General and administrative expenses164,400181,560Interest expense5,1603,120Income tax expense24,48073,440Total debits$908,040 $1,171,320Credits, December 3120202019Allowance for doubtful accounts$ 1,560$ 1,320Accumulated depreciation19,80018,000Trade accounts payable30,00021,000Income taxes payable25,20032,520Deferred income tax liability6,3605,520Callable bonds payable, 8%54,00024,000Common stock60,00048,000Additional paid-in capital10,9209,000Retained earnings53,64077,520Sales646,560934,440Total credits5908,040 $1,171,320Additional information1. Purchased $6,000 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.RequiredWhat 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 5b. Cash paid to suppliersc. Cash paid for interestd. Cash paid for income taxese. Cash paid for selling expenses 5

Introduction: An adjusted trial balance is an internal document that outlines all of the current…

djusted trial balances for Garboz Company, an industrial recycler, at December 31, 2020, and 2019, follow. Debits, December 31 2020 2019 Cash $42.000 $38.400 Accounts receivable 39.600 36.000 Inventory 37.200 56.400 Property. plant and equipment 120.000 114.000 Discount on bonds payable Cost of goods sold Selling erpenses General and administrative expenses 164.400 Interest expense 5.400 6.000 300.000 456.000 169.800 206.400 181.560 5.160 3.120 Income tax expense 24.480 73.440 Total debits $908.040 $1.171.320 Credits, December 31 2020 2019 Allowance for doubrful accounts $1.560 $1.320 Accumulated depreciation 19.800 18.000 Trade accounts payable 30.000 21,000 income taves payable 25.200 32.520 Deferred income tax liability 6.360 5.520 Callable bonds payable. 3% 54.000 24.000 Common stock 60.000 48.000 Additional paid-in capital 10.920 9.000 Retained earning Sales Total credits 53.640 77.520 646.560 934.440 5908.040 51.171.320 dditional information . Purchased $6,000 of equipment in 2020. . Allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses.

djusted trial balances for Garboz Company, an industrial recycler, at December 31, 2020, and 2019, follow. Debits, December 31 2020 2019 Cash $42.000 $38.400 Accounts receivable 39.600 36.000 Inventory 37.200 56.400 Property. plant and equipment 120.000 114.000 Discount on bonds payable Cost of goods sold Selling erpenses General and administrative expenses 164.400 Interest expense 5.400 6.000 300.000 456.000 169.800 206.400 181.560 5.160 3.120 Income tax expense 24.480 73.440 Total debits $908.040 $1.171.320 Credits, December 31 2020 2019 Allowance for doubrful accounts $1.560 $1.320 Accumulated depreciation 19.800 18.000 Trade accounts payable 30.000 21,000 income taves payable 25.200 32.520 Deferred income tax liability 6.360 5.520 Callable bonds payable. 3% 54.000 24.000 Common stock 60.000 48.000 Additional paid-in capital 10.920 9.000 Retained earning Sales Total credits 53.640 77.520 646.560 934.440 5908.040 51.171.320 dditional information . Purchased $6,000 of equipment in 2020. . Allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 55PSB: Preparing a Statement of Cash Flows Volusia Company reported the following comparative balance...

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Cash Receipts from Customers Singleton Inc. had accounts receivable of $22,150 at January 1, 2019, and $26,850 at December 31, 2019. Net income for 2019 was $125,300 and sales revenue was $1,240,000. Required: Compute the amount of cash collected from customers using the direct method.
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…
Preparing a Cash Flow Worksheet Taser Corporation’s recent comparative balance sheet and income statement follow. Balance Sheets, December 31 2019 2020 Assets Cash and cash equivalents $93,600 $153,120 Accounts receivable (net) 163,200 163,200 Merchandise inventory 374,400 408,000 Investments, long-term 48,000 Plant assets 808,800 866,400 Accumulated depreciation (211,200) (163,200) Total assets $1,228,800 $1,475,520 Liabilities and Stockholders’ Equity Accounts payable $100,800 $91,200 Salaries payable 7,200 2,400 Income taxes payable 9,600 16,800 Bonds payable 480,000 480,000 Premium on bonds payable 19,200 17,760 Common stock, no-par 576,000 746,400 Retained earnings 36,000 120,960 Total liabilities andstockholders’ equity $1,228,800 $1,475,520 Income Statement,For Year Ended December 31 2020 Sales revenue $576,000 Cost of goods sold (230,400) Depreciation expense (28,800) Salaries expense (105,600) Income tax…
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21. Riverbed Corp. uses the direct method to prepare its statement of cash flows. Riverbed trial balances at December 31, 2020 and 2019, are as follows. December 31 Debits 2020 2019 Cash $34,800 $32,300 Accounts receivable 32,800 29,800 Inventory 30,900 47,000 Property, plant, & equipment 100,800 95,900 Unamortized bond discount 4,600 5,100 Cost of goods sold 252,100 378,200 Selling expenses 142,700 172,900 General and administrative expenses 136,800 152,300 Interest expense 4,300 2,600 Income tax expense 20,400 60,600 $760,200 $976,700 Credits Allowance for doubtful accounts $1,300 $1,100 Accumulated depreciation—plant assets 16,600 15,100 Accounts payable 25,300 15,600 Income taxes payable 21,000 29,000 Deferred tax liability 5,200 4,500 8% callable bonds payable 44,500…
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