The balance sheet and income statement for Bertha€™s Bridal Boutique are presented along with some additional information about the accounts. You are to answer the questions that follow concerning cash flows for the period.

a. All accounts receivable and accounts payable are related to trade merchandise. Accounts payable are recorded net and always are paid to take all the discounts allowed. The allowance for doubtful accounts at the end of 2014 was the same as at the end of 2013; no receivables were charged against the allowance during 2014.
b. The proceeds from the note payable were used to finance a new warehouse. Capital stock was sold to provide additional working capital.

Required:
1. Calculate the cash collected during 2014 from accounts receivable.
2. Calculate the cash payments during 2014 on accounts payable to suppliers.
3. Calculate the cash provided from operations for2014.

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Balance Sheet December 31 2014 2013 Assets Current assets S 450,000 692,000 723,000 50,000 1,915,000 $ 364,000 625,000 610,000 70,000 1,669,000 20,000 815,000 (75,000) 740,000 $2.429.000 Cash Accounts receivable-net Prepaid expenses Total current assets Long-term investments Property, plant, and equipment Less: Accumulated depreciation 150,000 1,622,000 100,000) 1,522,000 S3,587,000 Total assets Liabilities and Stockholders' Equity Current liabilities $451,000 179,000 Accounts payable Accrued expenses Dividends payable 399,000 185,000 50,000 634,000 750,000 Total current liabilities 630,000 Notes payable due 2017 Stockholders' Equity 1400,000 803,000 2,203,000 S3,587,000 1,300,000 499,000 1,799,000 2,429,000 Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Income Statements Years Ended December 31 2014 2013 Net credit sales Cost of goods sold Gross profit Operating expenses (including income taxes) Net income S7,200,000 4,320,000 2,880,000 6,500,000 3,900,000 2,600,000 2,145,000 $ 455,000 376,000 S 504,000