Items 1 through 5 are based on the following:

Flax Corp. uses the direct method to prepare its statement of cash flows. Flax’s trial balances at December 31, 2006 and 2005 are as follows:

Â	Â	December 31
Â	Â	2006	Â	2005
Debits	Â	Â	Â	Â
Cash	$	35,000	$	32,000
Accounts receivable	Â	33,000	Â	30,000
Inventory	Â	31,000	Â	47,000
Property, plant, & equipment	Â	100,000	Â	95,000
Unamortized bond discount	Â	4,500	Â	5,000
Cost of goods sold	Â	250,000	Â	380,000
Selling expenses	Â	141,500	Â	172,000
General and administrative expenses	Â	137,000	Â	151,300
Interest expense	Â	4,300	Â	2,600
Income tax expense	Â	20,400	Â	61,200
Â	$	756,700	$	976,100
Credits	Â	Â	Â	Â
Allowance for uncollectible accounts	$	1,300	$	1,100
Accumulated depreciation	Â	16,500	Â	15,000
Trade accounts payable	Â	25,000	Â	17,500
Income taxes payable	Â	21,000	Â	27,100
Deferred income taxes	Â	5,300	Â	4,600
8% callable bonds payable	Â	45,000	Â	20,000
Common stock	Â	50,000	Â	40,000
Additional paid-in capital	Â	9,100	Â	7,500
Retained earnings	Â	44,700	Â	64,600
Sales	Â	538,800	Â	778,700
Â	$	756,700	$	976,100

• Flax purchased $5,000 in equipment during 2006.
• Flax allocated one third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. There were no write-offs of accounts receivable during 2006.

What amounts should Flax report in its statement of cash flows for the year ended December 31, 2006, for the following:

Cash collected from customers?

1. $541,800
2. $541,600
3. $536,000
4. $535,800

Cash paid for goods to be sold?

1. $258,500
2. $257,500
3. $242,500
4. $226,500

Cash paid for interest?

1. $4,800
2. $4,300
3. $3,800
4. $1,700

Cash paid for income taxes?

1. $25,800
2. $20,400
3. $19,700
4. $15,000

Cash paid for selling expenses?

1. $142,000
2. $141,500
3. $141,000
4. $140,000