Question #$4.$

$20$ marks

Sales for the year are $$61,000.$ The cash paid for operating expenses $($disbursements$)$ for the year is $$42,500.$

Required:

a$.$

Determine cash collections from customers $(6$ marks$).$

Calculate CFO $=$ Collections $-$ Disbursements. $(2$ marks$).$

b$.$

Calculate the net income $(6$ marks$).$

Reconcile NI to CFO $(6$ marks$).$