Question: Using data below, if sales were $1,250,000 what is the cash collected from customers to be reported if using a direct method to present the
Using data below, if sales were $1,250,000 what is the cash collected from customers to be reported if using a direct method to present the statement of cash flows?

Particulars Amount (in $) Cash flow from Operating activities : Net Income 25,000 Adjustments - Depreciation 25,000 Accounts receivable 20,000 Inventory 5,000 Prepaid Expense 5,000 Accounts payable (15,000) Net Cash flow from operating activities (A) 65,000 Cash flow from Investing activities : Purchase of equipment (65,000) Net Cash used in Investing activities (B) (65,000) Cash flow from Financing activities : Dividend paid (10,000) Debt repaid (280,000) Debt borrowed 297,000 Net Cash flow from Financing activities (C) 7,000 Net cash flow (A + B + C) 7,000 Add : Beginning Cash balance 65,000 Cash balance as on December, 2019 72,000
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