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.
Instructions
Compute (a) cash receipts from customers and (b) cash payments for operating expenses using the direct method.

Question

Quizplus · Accepted Answer

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.
Instructions
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