Question Content AreaThe following selected account balances appeared on the financial statements of the Washington Company. Use these balances to answer the question that follow.
Accounts receivable, Jan. 1 $13,000
Accounts receivable, Dec. 31 9,000
Accounts payable, Jan. 1 4,000
Accounts payable, Dec. 31 7,000
Inventory, Jan. 1 10,000
Inventory, Dec. 31 15,000
Sales 56,000
Cost of goods sold 31,000
The Washington Company uses the direct method to calculate net cash flow from operating activities. Assume that all accounts payable are owed to merchandise suppliers.
Cash collections from customers were
$52,000
$56,000
$45,000
$60,000
