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On Jan 1, 2015 the Company had a $5,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts

On Jan 1, 2015 the Company had a $5,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account.

During the year, company provided $20,000 of service on account and collected $18,000 cash from account receivable. Bad debts are estimated to be 3% of sales on account.

Calculate the amount of cash flow from operating activities?

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