Assume Cramer uses the direct method to prepare the statement of cash flows. Credit sales totaled $780,000, accounts receivable increased by $30,000,

and accounts payable decreased by $25,000. How much cash did the company collect from customers?

A.

$750,000

B.

$775,000

C.

$810,000

D.

$780,000

2. Assume Cramer uses the direct method to prepare the statement of cash flows. Income tax payable was $ 6 comma 000$6,000

at the end of the year and $2,600 at the beginning. Income tax expense for the year totaled $59,800. What amount of cash did the company pay for income tax during the year?

A.

$59,800

B.

$63,200

C.

$62,400

D.

56,400