Use the Direct Method of Cash Flows to Answer the Question

question 117

Essay

Use the direct method of cash flows to answer the question.
$\begin{array} { l l } \text { Beginning A/R: } \$ 67,000 & \text { Beginning Inventory: } \$ 42,000 \\\text { Ending A/R: } \$ 79,000 & \text { Ending Inventory: } \$ 47,000 \\\text { Credit Sales: } \$ 745,000 & \text { Beginning A/P: } \$ 29,000 \\\text { Cost of Good Sold: } \$ 412,000 & \text { Ending A/P: } \$ 36,000\end{array}$
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Compute the cash received from receivables customers during the year.

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Definitions:

Data Collection

The process of gathering and measuring information on variables of interest in an established systematic fashion, enabling one to answer stated research questions.

Information Dissemination

The process of distributing or spreading information to a wide audience, often used in contexts of marketing, public relations, and information technology.

Control Accounts

General ledger accounts that consolidate and summarize the detailed information from subsidiary ledgers.

Subsidiary Accounts

Detailed accounts linked to a general ledger account that record individual transactions related to that ledger's balance.