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The following selected account balances appeared on the financial statements of the Washington Company: Accounts receivable, Jan. 1 $13,000 Accounts receivable, Dec. 31 9,000 Accounts
The following selected account balances appeared on the financial statements of the Washington Company:
Accounts receivable, Jan. 1 $13,000
Accounts receivable, Dec. 31 9,000
Accounts payable, Jan. 1 4,000
Accounts payable, Dec. 31 7,000
Merchandise inventory, Jan. 1 10,000
Merchandise inventory, Dec. 31 15,000
Sales 56,000
Cost of merchandise sold 31,000
The Washington Company uses the direct method to calculate net cash flow from operating activities.
Cash collections from customers were
a. $56,000
b. $60,000
c. $52,000
d. $45,000
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