26. In 2022 net sales were $400,000. During 2022 accounts receivable decreased by $50,000. How much money did the company charge its customers?

a. $400,000 b. $450,000 c.$350,000

d. CANNOT be determined without additional information

27. The Statement of Income and Expenses of The Major Company presented a net loss of $150,000 in 2022. The amount of depreciation and amortization for 2022 was $40,000. The company presents the operational activities in the EFE using the indirect method. Assuming all adjustments other than depreciation and amortization have a positive net balance of $125,000, how much cash is provided (inflow) or used (outflow) by operating activities?

a. $315,000 provided

b. $15,000 provided

c. $165,000 provided

d. $65,000 used

28. A company collected $40,000 in dividends and paid its shareholders $70,000 in dividends. The company uses the direct method for operational activities. How do you present this information?

a. $40,000 in operating activities and $70,000 in financing activities

b. $40,000 in investing activities and $70,000 in financing activities

c. $40,000 in investing activities and $70,000 in operating activities

d. $30,000 net in operating activities.