FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On January 1, Year 2, Grande Company had a $21,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $78,000 of service on account. The company collected $74,500 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account.

What is the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows?

**Multiple Choice:**
- $57,420
- $78,000
- $74,500
- $73,010
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Transcribed Image Text:On January 1, Year 2, Grande Company had a $21,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $78,000 of service on account. The company collected $74,500 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account. What is the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows? **Multiple Choice:** - $57,420 - $78,000 - $74,500 - $73,010
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