The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following:a. If sales for the current year were $513,750 and accounts receivable decreased by $32,625 during the year, what was the amount of cash received from customers?b. If income tax expense for the current year was $34,500 and income tax

Chapter 16, Exercises #19
The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following:
a. If sales for the current year were $513,750 and accounts receivable decreased by $32,625 during the year, what was the amount of cash received from customers?
b. If income tax expense for the current year was $34,500 and income tax payable decreased by $3,900 during the year, what was the amount of cash payments for income tax?
c. Briefly explain why the cash received from customers in (a) is different than sales.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...

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Related Book For answer-question

Financial Accounting

12th Edition

Authors: Warren, Reeve, Duchac

ISBN: 978-1133952428

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