Holooly Plus Logo
Holooly Plus Logo

Question 16.6: Cash Received from Customers—Direct Method Sales reported on......

Cash Received from Customers—Direct Method

Sales reported on the income statement were $350,000. The accounts receivable balance declined $8,000 over the year. Determine the amount of cash received from customers.

Step-by-Step
The 'Blue Check Mark' means that this solution was answered by an expert.
Learn more on how do we answer questions.
Report Answer

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      $350,000

Add decrease in accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . .           \underline{8,000}

Cash received from customers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     \underline{\underline{\$ 358,000}}

Related Answered Questions

Question: 16.IP

The comparative balance sheet of Dowling Company for December 31, 2012 and 2011, is as follows: ...

Verified Answer:

1. Dowling Company Statement of Cash Flows—Indirec...
Question: 16.1

Classifying Cash Flows Identify whether each of the following would be reported as an operating, investing, or financing activity in the statement of cash flows. a. Purchase of patent d. Cash sales b. Payment of cash dividend e. Purchase of treasury stock c. Disposal of equipment f. Payment of wages ...

Verified Answer:

a.  Investing               d.  Operating b.  Fina...
Question: 16.2

Adjustments to Net Income—Indirect Method Omni Corporation’s accumulated depreciation increased by $12,000, while $3,400 of patents were amortized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement ...

Verified Answer:

Net income . . . . . . . . . . . . . . . . . . . ....
Question: 16.4

Cash Flows from Operating  Activities—Indirect Method Omicron Inc. reported the following data: Net income $120,000 Depreciation expense 12,000 Loss on disposal of equipment 15,000 Increase in accounts receivable 5,000 Decrease in accounts payable 2,000 Prepare the Cash Flows from Operating ...

Verified Answer:

Cash flows from operating activities: Net income ....
Question: 16.5

Land Transactions on the Statement of Cash Flows Alpha Corporation purchased land for $125,000. Later in the year, the company sold a different piece of land with a book value of $165,000 for $200,000. How are the effects of these transactions reported on the statement of cash flows? ...

Verified Answer:

The gain on sale of land is deducted from net inco...
Question: 16.7

Cash Payments for Merchandise—Direct Method Cost of merchandise sold reported on the income statement was $145,000. The accounts payable balance increased by $4,000, and the inventory balance increased by $9,000 over the year. Determine the amount of cash paid for merchandise. ...

Verified Answer:

Cost of merchandise sold. . . . . . . . . . . . . ...
Question: 16.3

Changes in Current Operating Assets and Liabilities—Indirect Method Victor Corporation’s current operating assets and liabilities from the company’s comparative balance sheet were as follows: ...

Verified Answer:

Net income . . . . . . . . . . . . . . . . . . . ....
Question: 16.8

Free Cash Flow Omnicron Inc. reported the following on the company’s cash flow statement in 2012 and 2011: ...

Verified Answer:

a.   ¹   $120,000 × 75% ²   $80,000 × 75% b. The c...