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 20,000 Common stock 49,700 40,000 Paid-in capital in excess of par 9,000 7,500 Retained earnings 44,400 64,600 Sales revenue 543,200 779,300 $760,200 $976,700 Additional information: 1. Riverbed purchased $4,900 in equipment during 2020. 2. Riverbed allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. 3. Bad debt expense for 2020 was $4,900, and write-offs of uncollectible accounts totaled $4,700. Determine what amounts Riverbed 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. $ (e) Cash paid for selling expenses. $ D) Cash paid for income taxes: ? my answer I put is incorrect 4700 E) Cash paid for selling expense: ?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	20,000
Common stock	49,700	40,000
Paid-in capital in excess of par	9,000	7,500
Retained earnings	44,400	64,600
Sales revenue	543,200	779,300
	$760,200	$976,700

Additional information:

1.		Riverbed purchased $4,900 in equipment during 2020.
2.		Riverbed allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses.
3.		Bad debt expense for 2020 was $4,900, and write-offs of uncollectible accounts totaled $4,700.

Determine what amounts Riverbed 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.	$
(e)	Cash paid for selling expenses.	$

D) Cash paid for income taxes: ? my answer I put is incorrect 4700

E) Cash paid for selling expense: ?

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