Question
Comparative financial statements for Star Company are shown below: Star Company Balance Sheets December 31, 2017 and 2018 Assets 2017 2018 Current assets: Cash $18,000
Comparative financial statements for Star Company are shown below: Star Company Balance Sheets December 31, 2017 and 2018 Assets 2017 2018 Current assets: Cash $18,000 $15,000 Accounts receivable 25,000 22,000 Inventory 22,000 20,000 Prepaid expenses 10,000 14,000 Total current assets $75,000 $71,000 Long-term investments 25,000 7,000 Property, plant, and equipment 80,000 77,000 Less: Accumulated depreciation 64,000 61,000 Net property, plant, and equipment 16,000 16,000 Total assets $116,000 $94,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $8,000 $5,000 Accrued liabilities 15,000 6,400 Total current Liabilties $23,000 $11,400 Bonds payable 22,000 16,000 Less: Discount on B/P 4,000 3,000 Deferred income tax liability 15,000 4,000 Total liabilities $56,000 $28,400 Stockholders' equity: Common stock 16,000 24,000 Paid-in capital 4,000 6,000 Retained earnings 40,000 35,600 Total stockholders' equity 60,000 65,600 Total liabilities and stockholders' equity $116,000 $94,000 Star Company Income Statement For the Year Ended December 31, 2018 Sales $77,000 Cost of goods sold 40,000 Gross margin $37,000 Operating expenses 20,000 Net operating income $17,000 Loss on sale of equipment 4,000 Interest expense 7,000 Income before taxes $6,000 Income tax expense 2,400 Net income $3,600
Additional data on activities during 2018 are as follows: Operating Expenses included depreciation expense in the amount of $5,000. During 2018, Star Company sold used equipment for $3,000 that had a cost of $15,000 with accumulated depreciation of $8,000. New equipment was purchased for $12,000 cash. Cash dividends totaling $8,000 were paid.
What is the amount of cash received from customers? Select one: a. $80,000 b. $79,000 c. $74,000 d. $77,000
Plz solve it as soon as possible
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