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ABC Company uses the direct method to prepare its statement of cash flows. Presented below are selected items from its financial statements. 12/31/Yr 3 12/31/Yr
ABC Company uses the direct method to prepare its statement of cash flows. Presented below are selected items from its financial statements.
12/31/Yr 3 | 12/31/Yr 2 | |
Accounts receivable | $89,000 | $56,000 |
Prepaid insurance | $2,800 | $4,600 |
Wages payable | $9,500 | $12,000 |
Interest payable | $12,000 | $8,900 |
Sales revenue | $860,000 | |
Cost of goods sold | $495,000 | |
Wages expense | $110,000 | |
Insurance expense | $13,200 | |
Interest expense | $19,000 |
Which of the following would be shown in the Operating Activities section related to sales/accounts receivable?
$33,000 would be subtracted from net income | ||
Cash collected from customers of $893,000 | ||
Cash collected from customers of $827,000 | ||
$33,000 would be added to net income |
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