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Grasso Corp

question 75

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Grasso Corp.reported accounts receivable of $38,000 on its December 31,2017,balance sheet.On December 31,2018,accounts receivable had decreased to $29,000.Sales for the year amounted to $57,000.What is the amount of cash collections that Grasso will report in the Operating Activities section of its 2018 statement of cash flows assuming that the direct method is used?


Definitions:

Payables Period

The length of time a company takes to pay its invoices to suppliers, reflecting its payment policy's efficiency.

Accounts Receivable Balance

The sum total of debts customers have towards a company for delivered goods or services which have not been paid for yet.

Wholesale Cost

The price charged for a product by the wholesaler, which is typically lower than the retail price.

Accounts Payable Balance

The total amount of money a company owes to its suppliers or creditors at a given point in time.

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