Dolan Company's income statement showed revenues of $250,000 and operating expenses of $160,000. Accounts receivable decreased by $60,000 and accounts payable increased by $40,000 during the year.
Required: Compute (A) cash receipts from customers and (B) cash payments for operating expenses using the direct method.

Question

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The Answer of Dolan Company's income statement showed revenues of $250,000 and operating expenses of $160,000. Accounts receivable decreased by $60,000 and accounts payable increased by $40,000 during the year.
Required: Compute (A) cash receipts from customers and (B) cash payments for operating expenses using the direct method.

Dolan Company's Income Statement Showed Revenues of $250,000 and Operating