Bhatti Communications' cash flow statement reported the following cash receipts and cash payments (the amount in brackets) for the year ended August 31, 2017:
BHATTI COMMUNICATIONS
Cash Flow Statement
For the Year Ended August 31, 2017
Cash flows from operating activities:
Cash receipts from customers ............................ $827,500
Interest received ............................................ 2,300
Cash flows from investing activities:
Loans made on notes receivable .......................... (13,750)
Collection of loans on notes receivable ................... 27,500
Bhatti's balance sheet one year earlier-at August 31, 2016-reported Accounts Receivable of $93,750 and Notes Receivable of $20,750. Credit sales for the year ended August 31, 2017, totaled $860,000, and the company collects all of its accounts receivable because uncollectibles rarely occur.
Bhatti Communications needs a loan, and the manager is preparing the company's balance sheet at August 31, 2017. To complete the balance sheet, the owner needs to know the balances of Accounts Receivable and Notes Receivable at August 31, 2017. Supply the needed information; T-accounts are helpful.