The following is a two part question:

1.

Question on Cash Flows

Manning Ltd provides the following information that relates to the period ended 31 December 2022:

Sales for the year $1,200,000

Accounts receivable, 1 January 2022 $ 300,000

Accounts receivable, 31 December 2022 $ 400,000

Bad debts expense $ 20,000

Allowance for doubtful debts, 1 January 2022 $ 30,000

Allowance for doubtful debts, 31 December 2022 $ 40,000

Manning Ltd uses the allowance method. How much cash was received from customers during the year?

2.

Question on Cash Flows

A few years ago, a company paid $78,000 cash for land. Last year, this land was revalued at $108,000. This year, when the land was sold, the company received $93,000 cash. An increase of $30,000 in the lands value was recorded in the asset revaluation reserve, reduced to $15,000 upon sale, and then transferred to retained earnings. These changes in the lands value were not reported in the Income Statement. On this years statement of cash flows, what amount should be reported as an investing activity from the sale of land?

a.

$93,000

b.

$63,000

c.

$15,000

d.

$78,000

e.

$108,000