Newark Company has provided the following information:

• Cash sales, $540,000
• Credit sales, $1,440,000
• Selling and administrative expenses, $420,000
• Sales returns and allowances, $99,000
• Gross profit, $1,450,000
• Increase in accounts receivable, $64,000
• Bad debt expense, $42,000
• Sales discounts, $52,000
• Net income, $1,030,000

How much cash was collected from customers?

rev: 11_07_2020_QC_CS-240040

Multiple Choice

• Cash flow increased $1,543,000.

• Cash flow decreased $2,037,000.

• Cash flow increased $1,422,000.

• Cash flow increased $1,765,000.

Newark Company has provided the following information:

• Cash sales, $540,000
• Credit sales, $1,440,000
• Selling and administrative expenses, $420,000
• Sales returns and allowances, $99,000
• Gross profit, $1,450,000
• Increase in accounts receivable, $64,000
• Bad debt expense, $42,000
• Sales discounts, $52,000
• Net income, $1,030,000

How much cash was collected from customers?

rev: 11_07_2020_QC_CS-240040

Multiple Choice

• Cash flow increased $1,543,000.

• Cash flow decreased $2,037,000.

• Cash flow increased $1,422,000.

• Cash flow increased $1,765,000.