23. Which of the following statements is correct? A) An increase in accounts receivable is added to sales to convert sales to cash received from customers. B) A decrease in prepaid insurance is added to insurance expense to convert insurance expense to cash paid for insurance. C) An increase in wages payable is deducted from wages expense to convert wages expense to cash paid to employees. D) A decrease in accumulated depreciation is added to depreciation expense to convert depreciation expense to cash paid for depreciation. E) None of the above 24. A company reported annual sales revenue of $2,772,000. During the year, accounts receivable decreased from a $102,000 beginning balance to a $69,600 ending balance. How much cash was received from customers for the year? A) $2,804,400 B) $3,036,600 c) $3,003,000 D) $ 33,600 E) None of the above 25. A firm sold property, plant, and equipment for cash proceeds of $4,200. The equipment originally cost $8,160. The company recorded a loss on sale of $2,520. The company uses the indirect method to prepare its statement of cash flows. Which of the following amounts would be included in cash from operations and cash from investing, respectively? A) $2,520 and $3,300 B) $4,200 and $2,520 C) $2,520 and $4,200 D) $2,520 and $0 E) None of the above 26. Aiello, Inc. had the following inventory in fiscal 2016. The company uses the FIFO method of accounting for inventory. Beginning Inventory, January 1, 2016: 130 units @ $15.00 Purchase 200 units @ $18.00 Purchase 50 units @ $13.50 Purchase 110 units @ $15.75 Ending Inventory, December 31, 2016: 120 units The company's cost of goods sold for fiscal 2016 is: A) $6,090.00 B) $6,045.00 C) $6,157.50 D) $5,305.75 E) None of the above