On December 31, 2018, Tiras Company reported net income of $50,000 and sales of $200,000. The company also reported beginning and ending accounts receivable at $20,000 and $25,000, respectively. Tiras will report cash collected from customers in its 2018 statement of cash flows (indirect method) in the amount of:
A) $0.
B) $245,000.
C) $205,000.
D) $195,000.

Question

Quizplus · Accepted Answer

When using the indirect method to determine cash flows from operating activities, cash collected from customers is not calculated or reported.

On December 31, 2018, Tiras Company Reported Net Income of $50,000