[The Following Information Applies to the Questions Displayed Below

question 34

Multiple Choice

[The following information applies to the questions displayed below.]

On January 1, Year 2 Grande Company had a $16,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $104,000 of service on account. The company collected $97,000 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account.


-What is the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows?

• A)$97,000
• B)$104,000
• C)$89,520
• D)$95,060

---

Definitions:

Dissolved Boundary

A theoretical or metaphorical concept referring to the blurring or elimination of distinctions between different categories, spaces, or identities.

Entertainment

Activities, events, or performances designed to provide enjoyment, amusement, or leisure to an audience.

Eroding

The process of gradually wearing away or deteriorating, often used metaphorically to describe the weakening of institutions or values.

Public Trust

The degree of confidence that the public has in the capability, integrity, and efficiency of organizations, institutions, or government to fulfill their responsibilities.