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Brandon Company prepares the operating section of its statement of cash flows using the direct method. For the year ended December 31, 2021, Brandon Company
Brandon Company prepares the operating section of its statement of cash flows using the direct method. For the year ended December 31, 2021, Brandon Company reports the following activity:
Sales on account $2,100,000
Cash sales 1,110,000
Decrease in accounts receivable (gross amount) 915,000
Increase in Allowance for doubtful accounts 8,000
Increase in accounts payable 108,000
Increase in inventory 72,000
Cost of goods sold 1,575,000
Bad debt expense 15,000
Required:
- What is the amount of cash collections from customers reported by the Company for the year ended December 31, 2021?
- What is the amount of cash paid to the suppliers reported by the company for the year ended December 31, 2021?
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