Assume Cramer uses the direct method to prepare the statement of cash flows. Credit sales totaled $750,000,

Question:

Assume Cramer uses the direct method to prepare the statement of cash flows. Credit sales totaled $750,000, accounts receivable increased by $40,000, and accounts payable decreased by $25,000. How much cash did the company collect from customers?

a. $710,000

b. $735,000

c. $790,000

d. $750,000

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... 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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