Los Lobos Corp. uses the direct method to prepare its statement of cash flows. R
ID: 2487687 • Letter: L
Question
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
$35,110
$32,340
32,620
30,220
30,680
47,330
105,030
96,400
4,180
5,010
252,780
379,790
141,200
171,520
136,870
151,390
4,730
2,690
19,910
61,040
$763,110
$977,730
$1,940
$1,190
17,057
13,610
24,610
16,680
20,540
28,690
5,460
4,050
44,520
20,020
53,280
43,100
8,910
7,150
45,010
64,890
541,783
778,350
$763,110
$977,730
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.
Show your work and find answer to a-e. I would really appreciate it. Thanks
December 31
Debits2014
2013
Cash$35,110
$32,340
Accounts receivable32,620
30,220
Inventory30,680
47,330
Property, plant, & equipment105,030
96,400
Unamortized bond discount4,180
5,010
Cost of goods sold252,780
379,790
Selling expenses141,200
171,520
General and administrative expenses136,870
151,390
Interest expense4,730
2,690
Income tax expense19,910
61,040
$763,110
$977,730
Credits Allowance for doubtful accounts$1,940
$1,190
Accumulated depreciation—plant assets17,057
13,610
Accounts payable24,610
16,680
Income taxes payable20,540
28,690
Deferred income taxes5,460
4,050
8% callable bonds payable44,520
20,020
Common stock53,280
43,100
Paid-in capital in excess of par8,910
7,150
Retained earnings45,010
64,890
Sales revenue541,783
778,350
$763,110
$977,730
Explanation / Answer
aNS a Cash Received from Customers Sales 541783 Less: increase in accounts receivable (net of write off) (32620-(30220-4680)) -7080 Cash Received from Customers 534703 Note allowance abd bad debt expense are non cash so not taken in direct method b Cash paid to Supplies Cost of Good Sold 252780 Add: Closing Inventory 30680 Less: Opening inventory -47330 Purchases 236130 Add: Opening balance 16680 Less: closing Balance -24610 Cash paid to Supplies 228200 c Cash Paid for Interest Interest expense 19910 Less: amortized Discount (5010-4180) 830 c Cash Paid for Interest 20740 Cash paid for income tax expense Opening balance 28690 Add: income Tax expense 19910 Less: Closing balance -20540 Less: increase in deferred tax payable (5460-4050) -1410 Cash paid for income tax expense 26650 ans e Cash paid for selling expense Selling Expense 141200 Less: Depreciation (1/3*(17057-13610)) -1149 Cash paid for selling expense 140051
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