Dense Company's income statement showed revenues of $275000 and operating expenses of $135000. Accounts receivable decreased by $40000 and accounts payable increased by $35000 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 Dense Company's income statement showed revenues of $275000 and operating expenses of $135000. Accounts receivable decreased by $40000 and accounts payable increased by $35000 during the year.
Instructions
Compute (a) cash receipts from customers and (b) cash payments for operating expenses using the direct method.

Dense Company's Income Statement Showed Revenues of $275000 and Operating