Multiple Choice Question 94

Marigold Corp.Comparative Balance Sheets.December 31,20192018Assets:Current Assets:Cash$ 1400000

$1060000Accounts Receivable (net)31400002180000Inventory40000002520000Prepaid Expenses701000632000Total Current Assets92410006392000Long-Term Investments450000Plant Assets:Property, Plant & Equipment43900002881000Accumulated Depreciation(902000)(541000)Total Plant Assets34880002340000Total Assets$13179000

$8732000

.Equities:Current Liabilities:Accounts Payable$2548000$2192000

Accrued Expenses620000565000Dividends Payable404000Total Current Liabilities35720002757000Long-Term Notes Payable1650000Stockholders' Equity:Common Stock59000004600000Retained Earnings20570001375000Total Equities$13179000

$8732000

Marigold Corp.Comparative Income Statements.December 31,20192018Net Credit Sales$14020000$7505000Cost of Goods Sold78310003762000

Gross Profit6189000

3743000Operating Expenses (including Income Tax)

51710002747000Net Income$1018000

$996000

Additional Information:

a.Accounts receivable and accounts payable relate to merchandise held for sale in the normal course of business. The allowance for bad debts was the same at the end of 2019 and 2018, and no receivables were charged against the allowance. Accounts payable are recorded net of any discount and are always paid within the discount period.

b.The proceeds from the note payable were used to finance the acquisition of property, plant, and equipment. Capital stock was sold to provide additional working capital.

What amount of cash was collected from 2019 accounts receivable?

$6530000.

$14980000.

$13060000.

$14020000.