Exercise 23-9 Los Lobos Corp. uses the direct method to prepare its statement of
ID: 2416340 • Letter: E
Question
Exercise 23-9
Los Lobos Corp. uses the direct method to prepare its statement of cash flows. Relevant balances for Los Lobos at December 31, 2014 and 2013, are as follows.
December 31
2014
2013
$34,740
$31,710
33,260
30,240
30,600
47,410
103,410
95,500
4,140
5,500
248,590
380,180
141,410
171,810
137,900
151,870
4,280
2,190
20,430
61,150
$758,760
$977,560
$1,790
$1,320
16,949
13,790
25,020
16,860
21,410
29,190
5,560
4,470
45,190
20,300
51,280
37,200
9,090
7,530
45,170
64,410
537,301
782,490
$758,760
$977,560
Additional information:
Determine what amounts Los Lobos should report in its statement of cash flows for the year ended December 31, 2014, for the following items.
Explanation / Answer
Solution:
(A).
Cash Collected from Customers
= 33,260 + 30,240 = 63,500
= 63,500 - 4,870
= 58,630
(B). Cash Paid to Suppliers
= 25,020 + 16,860 = 41,880
(C). Cash Paid for Interest
= 4,280 + 2,190 = 6,470
(D). Cash Paid for Income Taxes
= 20,430 + 61,150 = 81,580
(E). Cash Paid for Selling Expencess
= 47,137 + 57,270 = 1,04,407
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