E22.9 (LO 3.4) (SCF-Direct Method) Los Lobos Corp. uses the direct method to prepare its statement of cash flows. Los Lobos's trial balances at December 31, 2025 and 2024, are as follows. Additional information: 1. Los Lobos purchased $5,000 in equipment during 2025. December 31 2025 2024 Debits Cash Accounts receivable Inventory Property, plant, and equipment Unamortized bond discount $ 35,000 $ 32,000 33,000 30,000 31,000 100,000 47,000 95,000 4,500 5,000 Cost of goods sold 250,000 380,000 Selling expenses 141,500 172,000 General and administrative expenses 137,000 151,300 Interest expense 4,300 2,600 Income tax expense 20,400 $756,700 61,200 $976,100 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 $ 1,300 Sales revenue $ 1,100 16,500 15,000 25,000 15,500 21,000 29,100 5,300 4,600 45,000 20,000 50,000 40,000 9,100 7,500 44,700 64,600 538,800 778,700 $756,700 $976,100 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 2025 was $5,000, and write-offs of uncollectible accounts totaled $4,800. Instructions Determine what amounts Los Lobos should report in its statement of cash flows for the year ended December 31, 2025, 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.
E22.9 (LO 3.4) (SCF-Direct Method) Los Lobos Corp. uses the direct method to prepare its statement of cash flows. Los Lobos's trial balances at December 31, 2025 and 2024, are as follows. Additional information: 1. Los Lobos purchased $5,000 in equipment during 2025. December 31 2025 2024 Debits Cash Accounts receivable Inventory Property, plant, and equipment Unamortized bond discount $ 35,000 $ 32,000 33,000 30,000 31,000 100,000 47,000 95,000 4,500 5,000 Cost of goods sold 250,000 380,000 Selling expenses 141,500 172,000 General and administrative expenses 137,000 151,300 Interest expense 4,300 2,600 Income tax expense 20,400 $756,700 61,200 $976,100 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 $ 1,300 Sales revenue $ 1,100 16,500 15,000 25,000 15,500 21,000 29,100 5,300 4,600 45,000 20,000 50,000 40,000 9,100 7,500 44,700 64,600 538,800 778,700 $756,700 $976,100 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 2025 was $5,000, and write-offs of uncollectible accounts totaled $4,800. Instructions Determine what amounts Los Lobos should report in its statement of cash flows for the year ended December 31, 2025, 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:E22.9 (LO 3.4) (SCF-Direct Method) Los Lobos Corp. uses the direct method to prepare its statement of cash flows. Los Lobos's trial balances at December 31, 2025 and 2024, are as follows.
Additional information:
1. Los Lobos purchased $5,000 in equipment during 2025.
December 31
2025
2024
Debits
Cash
Accounts receivable
Inventory
Property, plant, and equipment
Unamortized bond discount
$ 35,000
$ 32,000
33,000
30,000
31,000
100,000
47,000
95,000
4,500
5,000
Cost of goods sold
250,000
380,000
Selling expenses
141,500
172,000
General and administrative expenses
137,000
151,300
Interest expense
4,300
2,600
Income tax expense
20,400
$756,700
61,200
$976,100
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
$ 1,300
Sales revenue
$ 1,100
16,500
15,000
25,000
15,500
21,000
29,100
5,300
4,600
45,000
20,000
50,000
40,000
9,100
7,500
44,700
64,600
538,800
778,700
$756,700
$976,100
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 2025 was $5,000, and write-offs of uncollectible accounts totaled $4,800.
Instructions
Determine what amounts Los Lobos should report in its statement of cash flows for the year ended December 31, 2025, 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.
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