Question
In its accrual-basis income statement for the year ended December 31, 2015, Nelson Company reported revenue of $3,500,000. Additional information is as follows: Accounts receivable
In its accrual-basis income statement for the year ended December 31, 2015, Nelson Company reported revenue of $3,500,000. Additional information is as follows: Accounts receivable December 31, 2014.................................. $1,010,000 Net income for 2015 .................................................................... 140,000 Accounts receivable December 31, 2015.................................. 750,000 Nelson should report cash collected from customers in its 2015 statement of cash flows (direct method) in the amount of: a. $3,240,000 b. $3,100,000 c. $3,380,000 d. $3,760,000
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