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Newark Company has provided the following information: • Cash sales, $450,000 • Credit sales, $1,350,000 •Selling and administrative expenses, $330,000 • Sales returns and allowances, $90,000 • Gross profit, $1,360,000 • Increase in accounts receivable, $55,000 • Bad debt expense, $33,000 • Sales discounts, $43,000 •Net income, $1,030,000 How much cash was collected from customers? A) Cash flow increased $1,295,000. B) Cash flow increased $1,612,000. C) Cash flow decreased $1,855,000. D) Cash flow increased $1,405,000

Newark Company has provided the following information: • Cash sales, $450,000 • Credit sales, $1,350,000 •Selling and administrative expenses, $330,000 • Sales returns and allowances, $90,000 • Gross profit, $1,360,000 • Increase in accounts receivable, $55,000 • Bad debt expense, $33,000 • Sales discounts, $43,000 •Net income, $1,030,000 How much cash was collected from customers? A) Cash flow increased $1,295,000. B) Cash flow increased $1,612,000. C) Cash flow decreased $1,855,000. D) Cash flow increased $1,405,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Newark Company has provided the following information: •Cash sales, $450,000 • Credit sales, $1,350,000 Selling and administrative expenses, $330,000 • Sales returns and allowances, $90,000 • Gross profit, $1,360,000 • Increase in accounts receivable, $55,000 • Bad debt expense, $33,000 • Sales discounts, $43,000 • Net income, $1,030,000 How much cash was collected from customers? A) Cash flow increased $1,295,000. B) Cash flow increased $1,612,000. C) Cash flow decreased $1,855,000. D) Cash flow increased $1,405,000
Transcribed Image Text:Newark Company has provided the following information: •Cash sales, $450,000 • Credit sales, $1,350,000 Selling and administrative expenses, $330,000 • Sales returns and allowances, $90,000 • Gross profit, $1,360,000 • Increase in accounts receivable, $55,000 • Bad debt expense, $33,000 • Sales discounts, $43,000 • Net income, $1,030,000 How much cash was collected from customers? A) Cash flow increased $1,295,000. B) Cash flow increased $1,612,000. C) Cash flow decreased $1,855,000. D) Cash flow increased $1,405,000
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