The income statement for Lillys Company for the year ended June 30, 2010, showed sales of $50,000.

Question:

The income statement for Lilly’s Company for the year ended June 30, 2010, showed sales of $50,000. During the year, the balance in accounts receivable increased by $7,500. What adjustment to net income would be shown in the operating section of the statement of cash flows prepared using the indirect method related to this information? How much cash was collected from customers during the fiscal year ended June 30, 2010?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...