In its accrual basis income statement for the year ended December 31, 2011, Nelson Company reported revenue of $3,500,000. Additional information is as follows:

Nelson should report cash collected from customers in its 2011 statement of cash flows (direct method) in the amount of
A) $3,240,000.
B) $3,100,000.
C) $3,380,000.
D) $3,760,000.

Question

In its accrual basis income statement for the year ended December 31, 2011, Nelson Company reported revenue of $3,500,000. Additional information is as follows:

Nelson should report cash collected from customers in its 2011 statement of cash flows (direct method) in the amount of
A) $3,240,000. 
B) $3,100,000. 
C) $3,380,000. 
D) $3,760,000.

Quizplus · Accepted Answer

The Answer of In its accrual basis income statement for the year ended December 31, 2011, Nelson Company reported revenue of $3,500,000. Additional information is as follows:

Nelson should report cash collected from customers in its 2011 statement of cash flows (direct method) in the amount of
A) $3,240,000. 
B) $3,100,000. 
C) $3,380,000. 
D) $3,760,000.

In Its Accrual Basis Income Statement for the Year Ended