Question

age Corp. uses the direct method to prepare its statement of cash flows. Sage trial balances at December 31, 2017 and 2016, are as follows. December 31 Debits 2017 2016 Cash $34,700 $31,700 Accounts receivable 33,100 29,900 Inventory 30,600 46,600 Property, plant, & equipment 100,800 95,700 Unamortized bond discount 4,500 5,000 Cost of goods sold 247,800 380,000 Selling expenses 140,900 171,900 General and administrative expenses 137,300 149,800 Interest expense 4,400 2,600 Income tax expense 20,300 61,800 $754,400 $975,000 Credits Allowance for doubtful accounts $1,300 $1,100 Accumulated depreciation—plant assets 16,600 15,100 Accounts payable 25,100 15,400 Income taxes payable 21,200 29,300 Deferred tax liability 5,400 4,700 8% callable bonds payable 44,700 20,000 Common stock 49,700 40,000 Paid-in capital in excess of par 9,000 7,500 Retained earnings 44,700 65,200 Sales revenue 536,700 776,700 $754,400 $975,000 Additional information: 1. Sage purchased $5,100 in equipment during 2017. 2. Sage allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. 3. Bad debt expense for 2017 was $5,000, and write-offs of uncollectible accounts totaled $4,800.

Determine what amounts Sage should report in its statement of cash flows for the year ended December 31, 2017, 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. $

Answer 1

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