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2. Newark Company has provided the following information: Cash sales, $450,000 Credit sales, $1,350,000 Selling and administrative expenses, $330,000 Sales returns and allowances, $90,000 Gross
2. Newark Company has provided the following information: Cash sales, $450,000 Credit sales, $1,350,000 Selling and administrative expenses, $330,000 Sales returns and allowances, $90,000 Gross profit, $1,360,000 . Increase in accounts receivable, $55,000 .Bad debt expense, $33,000 .Sales discounts, $43,000 .Net income, $1,030,000 .ci What is the effect of collections from customers on cash flow from operating activities, using the indirect method? A. Cash flow increased $975,000. B. Cash flow increased $395,000. C. Cash flow decreased $55,000. D. Cash flow increased $450,000
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