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On January 1, Year 2, Grande Company had a $70,400 balance in the Accounts Receivable account and a $2,800 balance in the Allowance for Doubtful

On January 1, Year 2, Grande Company had a $70,400 balance in the Accounts Receivable account and a $2,800 balance in the Allowance for Doubtful Accounts account. During Year 2, Grande recognized $187,000 of service revenue earned on account. The company collected $222,300 cash from accounts receivable. Uncollectible accounts are estimated to be 1% of sales on account.

Based on this information, the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows is:

Multiple Choice

  • $222,300.

  • $2,970.

  • $33,400.

  • $1,870.

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