Question
The records of J.Q. Morgan Company reported sales revenue of $100,000 (on the income statement) and a change in the balance of accounts receivable. To
The records of J.Q. Morgan Company reported sales revenue of $100,000 (on the income statement) and a change in the balance of accounts receivable. To demonstrate the effect of changes in accounts receivable on cash inflows from customers, five separate cases are used. Complete the table for each separate case.
| Case | Sales Revenue (From Income Statement) | Accounts Receivable Increase (Decrease) | Cash Flows | |
|---|---|---|---|---|
| A | $100,000 | $0 |
| |
| B | 100,000 | 10,000 |
| |
| C | 100,000 | (10,000) |
| |
| D | 100,000 | 9,000 | * |
|
| E | 100,000 | (9,000) | * |
|
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Auditing and Assurance services an integrated approach
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
15th edition
978-0133125634, 9780133423815, 133125637, 133423816, 978-0133125689
