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question 34

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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?


Definitions:

Public Law

The body of law that governs relationships between individuals and the government, including constitutional, administrative, and criminal laws.

Legal Remedy

The means by which a court of law enforces a right, imposes a penalty, or makes some other court order to impose its will.

Business Organization

An entity formed with the purpose of conducting commercial activities, such as corporations, partnerships, and sole proprietorships.

Democratic Validation

The process of confirming or legitimizing decisions or actions through democratic methods, such as voting or consensus.

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