Tropical Tours reported revenue of $400,000 for its year ended December 31, Year2. Accounts receivable at December 31, Year1 and

Question

3 years ago

11

Tropical Tours reported revenue of $400,000 for its year ended December 31, Year2. Accounts receivable at December 31, Year1 and

Year2, were $35,000 and $32,000, respectively. Using the direct method for reporting cash flows from operating activities, Tropical Tours would report cash collected from customers of:
a. $400,000.
b. $397,000.
c. $403,000.
d. $365,000.

Business

1 answer:

Svetradugi [14.3K] · Answer 1 · 2022-06-24T07:56:22+03:00

Svetradugi [14.3K]3 years ago

4 0

Answer:

Correct option is C.

Step wise solution is given below for demonstration.