Question 7:

X Company is a service company and prepares monthly financial statements. In April, it billed customers $405,000 for services it provided; in May, it billed customers $369,000 for services it provided.

In May, the company received $281,000 from its April customers and $273,000 from its May customers.

Which of the following amounts will appear on X Company's May Income Statement and Statement of Cash Flows?

a. both statements, $369,000 b. Income Statement, $369,000; Statement of Cash Flows, $554,000 c. Income Statement, $554,000; Statement of Cash Flows, $369,000 d. both statements, $273,000 e. Income Statement, $774,000; Statement of Cash Flows, $554,000 f.Income Statement, $554,000; Statement of Cash Flows, $774,000

answer: