COTB MC Qu. 15-49 (Algo) Assume that a company provided...

Assume that a company provided the following statement of cash flows (all sales are on account):

Operating activities:
Net income					$	45
Adjustments to convert net income to a cash basis:
Depreciation	$	15
Decrease in accounts receivable		2
Increase in inventory		(10	)
Increase in accounts payable		4				11
Net cash provided by (used in) operating activities						56
Investing activities:
Additions to property, plant, & equipment		(40	)
Net cash provided by (used in) investing activities						(40	)
Financing activities:
Issuance of common stock		5
Cash dividends paid		(14	)
Net cash provided by (used in) financing activities						(9	)
Net increase in cash and cash equivalents						7
Beginning cash and cash equivalents						6
Ending cash and cash equivalents					$	13

If the companys sales were $222, then its cash collections from customers were:

Multiple Choice

• $230.

  Incorrect

• $214.

• $224.

• $220.