Venture Company earned $8,000 of service revenue on account during 2010. The company collected $5,200 cash from

Question:

Venture Company earned $8,000 of service revenue on account during 2010. The company collected $5,200 cash from accounts receivable during 2010.

Required

Based on this information alone, determine the following.

a. The balance of the accounts receivable that Venture would report on the December 31, 2010, balance sheet.

b. The amount of net income that Venture would report on the 2010 income statement.

c. The amount of net cash flow from operating activities that Venture would report on the

2010 statement of cash flows.

d. The amount of retained earnings that Venture would report on the 2010 balance sheet.

e. Why are the answers to Requirements b and c different?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...