Beyond the Numbers 9–1 Beacon Communications’ cash flow statement reported the following cash receipts and cash payments (the amount in brackets) for the year ended August 31, 2010:

BEACON COMMUNICATIONS Cash Flow Statement For the Year Ended August 31, 2010 Cash flows from operating activities:

Cash receipts from customers.................................................................. $1,655,000 Interest received......................................................................................... 4,600 Cash flows from investing activities:

Loans made on notes receivable ............................................................. (27,500)

Collection of loans on notes receivable .................................................. 55,000 Beacon’s balance sheet one year earlier—at August 31, 2009—reported Accounts Receivable of $187,500 and Notes Receivable of $41,500. Credit sales for the year ended August 31, 2010, totalled $1,720,000, and the company collects all of its accounts receivable because uncollectibles rarely occur.

Beacon Communications needs a loan, and the manager is preparing the company’s balance sheet at August 31, 2010. To complete the balance sheet, the owner needs to know the balances of Accounts Receivable and Notes Receivable at August 31, 2010. Supply the needed information; T-accounts are helpful.