a)

The 2016 income statement of Phillips Co. reported total sales revenue of $241,000; the 2015 balance sheet showed a balance in accounts receivable of $38,500 while the 2016 balance sheet showed a balance in accounts receivable of $56,000. The amount of cash collected from customers was:

$258,500

$279,500.

$241,000.

$223,500.

b) When using the indirect method to complete the cash flows from operating activities section of the statement of cash flows, what is the proper disposition of a loss on disposal of equipment?

Add the loss to net income.

Disregard the loss because it relates to a financing activity.

Subtract the loss from net income.

Disregard the loss because it relates to an investing activity.

c) The 2016 income statement of Gregg Co. reported wages expense of $340,000; the 2015 balance sheet showed a balance in wages payable of $40,000, while the 2016 balance sheet included wages payable of $55,000. What amount of cash was paid for wages in 2016?

$340,000.

$300,000.

$325,000.

$380,000.