Sweetson Enterprises' Comparative Balance Sheets Included Accounts Receivable of $220,300

question 154

Multiple Choice

Sweetson Enterprises' comparative balance sheets included accounts receivable of $220,300 at December 31,2017,and $200,900 at December 31,2018.Sales reported on Sweetson's 2018 income statement amounted to $2,350,000.What is the amount of cash collections that Sweetson will report in the Operating Activities category of its 2018 statement of cash flows assuming that the direct method is used? ​

• A)$2,369,400
• B)$2,350,000
• C)$2,771,200
• D)$2,330,600

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Definitions:

Average Variable Cost

The variable costs of production (costs that change with output level) divided by the quantity of output, indicating the average variable cost per unit.

Producing Purses

Producing purses involves the manufacturing and assembling of various materials to create handbags and similar accessories.

Average Fixed Cost

The sum of all production fixed costs divided by the number of units produced.

Producing Purses

Involves the manufacturing and crafting of handbags and purses, often focusing on aspects like design, material quality, and functionality.