Please fix the boxes in red. Answers must be CORRECT for a thumbs-up. Los Lobos
ID: 2582824 • Letter: P
Question
Please fix the boxes in red. Answers must be CORRECT for a thumbs-up.
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. 31 Accounts receivable Property, plant, & equipment Unamortized bond discount Cost of goods sold General and administrative expenses 5761,630 - Allowance for doubtful accounts 2 Accumulated depreciation-plant assets able taxes 8% callable bonds payable Paid-in capital in excess of par Retained earningsExplanation / Answer
Cash Collected from Customers:- Begining Balance of Acct. Receivables 29800 Sales Revenue (assumed all on account) 543810 573610 Less: Bad Debts Write Off 4430 Ending Balance of Acct. Receivables 33350 Cash Collected from Customers 535830 Cash Paid for Selling Expenses: Depreciation during the Year Accumulated Dep. Begining 13850 Accumulated Dep. Ending 17420 Depreciation for the year 3570 1/3 allocated to Selling Expenses (3570*1/3) 1190 Total Selling Expenses 141900 Less: Allocated part of Depreciation 1190 Expenses Paid in cash 140710