Cash Collections—Direct Method Spencer Corp. reported accounts receivable of $28,000 on its December 31, 2009, balance sheet. On December 31, 2010, accounts receivable had decreased to $22,000. Sales for the year amounted to $55,000. What is the amount of cash collections that Spencer will report in the Operating Activities section of its 2010 statement of cash fl ows assuming that the direct method is used?

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