19. In its accrual basis income statement for the year ended December 31, 2012,

Question

19. In its accrual basis income statement for the year ended December 31, 2012, Nelson Company reported revenue of $3,500,000. Additional information is as follows: Accounts receivable-- Beg.

December 31, 2011 ............... $ 750,000

Net income for 2012 .................................. 140,000

Accounts receivable--End. December 31, 2012 ............... 1,010,000

Nelson should report cash collected from customers in its 2012 statement of cash flows (direct method) in the amount of

a. $3,240,000.

b. $3,100,000.

c. $3,380,000.

d. $3,760,000.

____ 20. Stiggins Corporation had the following account balances for 2012: December 31 January 1

Accounts Payable ...................... $67,200 $58,200

Prepaid Rent Expense .................. 24,600 37,200

Accounts Receivable (net) ............. 84,000 66,600

Stiggins' 2012 net income is $450,000. What amount should Stiggins include as net cash provided by operating activities in its 2012 statement of cash flows?

a. $436,200

b. $445,200

c. $453,600

d. $454,200

Explanation / Answer

19) Calculate cash collected from customer in its 2012 :

so answer is a) $3240000

20) Calculate net cash provided by operating activities in its 2012 statement of cash flows?

so answer is d) $454200

Beginning account receivable 750000 Add: Revenue 3500000 Less: Ending account receivable (1010000) Cash collected from customer 3240000

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