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Hawthorne Industries' Comparative Balance Sheets Included Accounts Receivable of $221,400

question 179

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Hawthorne Industries' comparative balance sheets included accounts receivable of $221,400 at December 31,2016,and $205,900 at December 31,2017.Sales reported on Hawthorne's 2017 income statement amounted to $2,550,000.What amount of cash collections will Hawthorne will report in the Operating Activities category of its 2017 statement of cash flows assuming that the direct method is used? Show your calculations.


Definitions:

Price

The amount of money required to purchase a good, service, or asset, often influenced by factors like supply and demand.

Demand Increase

A situation in which the desire for a product or service rises, leading to a higher quantity being demanded at a given price.

Demand Decrease

A reduction in the quantity of a good or service that consumers are willing and able to purchase at a given price.

Quantity Demanded

Quantity demanded refers to the total amount of a product consumers are willing to purchase at a specific price level, holding all else constant.

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