Question

On January 1, Year 2, Grande Company had a $68,200 balance in the Accounts Receivable account and a $2,300 balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $176,000 of service on account. The company collected $203,300 cash from accounts receivable. Uncollectible accounts are estimated to be 1% of sales on account. Based on this information, the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows is:

Answer 1

Answer:

Explanation:

From all the stated activities, only Accounts Receivable is considered as an operating activity. So, the amount of cash flow from operating activities is $203,300