Williams Media, Inc.s comparative balance sheets included accounts receivable of $100,000 on December 31, 2008, and $125,000

Question:

Williams Media, Inc.’s comparative balance sheets included of $100,000 on December 31, 2008, and $125,000 on December 31, 2009. Sales of consulting services reported by Williams Media on its 2009 income statement amounted to $2 million.

Required
What is the amount of cash collections that Williams Media should report in the Operating section of its 2009 statement of cash flows, assuming that the direct method is used?

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...