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
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How much cash was collected from customers?
A) Cash flow increased $1,295,000.
B) Cash flow increased $1,745,000.
C) Cash flow decreased $1,855,000.
D) Cash flow increased $1,405,000.
Correct Answer:
Verified
Q16: Gross profit is calculated as gross sales
Q17: When using the percentage of credit sales
Q18: When using an allowance for doubtful accounts
Q19: When goods are shipped FOB destination,the revenue
Q20: When goods are shipped FOB shipping point,title
Q22: A company sells a product FOB destination.The
Q23: Deposits in transit are deducted from the
Q24: Which of the following is correct when
Q25: Effective internal control of cash should include
Q26: Which of the following statements is correct?
A)Revenue
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