Cash Collections—Direct Method Emily Enterprises’ comparative balance sheets included accounts receivable of $224,600 at December 31, 2009, and $205,700 at December 31, 2010. Sales reported on Emily’s 2010 income statement amounted to $2,250,000. What is the amount of cash collections that Emily will report in the Operating Activities category of its 2010 statement of cash fl ows assuming that the direct method is used?

Multi-Concept Exercise AppendixLO1