Gitis, Inc uses the direct method to prepare its statement of cash flows
Use the following information reported for 2017:
Sales Revenue, $43,000
Interest Revenue, $600
Accounts Receivable, beginning balance, $13,400
Accounts Receivable, ending balance, $26,000
There were no amounts reported for Interest Receivable.
Compute the total cash receipts.
A) $26,000
B) $56,400
C) $31,000
D) $13,400
C .C)
Accounts Receivable beginning balance $13,400
Add: Sales Revenue 43,000
Add: Interest Revenue 600
Less: Accounts Receivable ending balance (26,000 )
Total cash receipts $31,000
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Indicate whether the statement is true or false.
Which of the following strategies makes no sense?
A. An employee exercises stock options early and sells the stock. No dividends are expected B. An employee exercises stock options early and keeps the stock. No dividends are expected C. An employee exercises stock options early and sells the stock. Dividends are expected D. An employee exercises stock options early and keeps the stock. Dividends are expected.