Statements of financial position on December 31, Year 1, and December 31, Year 2, are presented below. Dec 31, Dec. 31,
Year 1 Year 2
Assets
Cash 50,000 $ 60,000
Accounts receivable 95,000 89,000
Allowance for uncollectible accounts (4.000) (3.000)
Inventory 120,000 140,000
Property, plant, and equipment 295,000 340,000
Accumulated depreciation (102,000) (119.000)
Total Assets $ 454.000 $507.000
Liabilities and equity:
Trade accounts payable $ 62,000 $ 49,000
Interest payable 8,000 11.000
Bonds payable 200,000 200,000
Unamortized bond discount (15,000) (10,000)
Equity 199,000 257,000
Total liabilities and equity $454,000 $507,000
Additional information for Year 2:
1. Sales revenue was $338,000
2. $3.000 of accounts receivable was written off
Cash collections from customers in Year 2 were 200.00 332
A. $344,000
B. $341,000
C. $335.000
D. $338,000

Cash collections from customers in Year 2 were:

B. $341,000

Explanation:

a) Data and Calculations:

Statements of Financial Position on December 31, Year 1 and Year 2:

                                                              Year 1     Year 2

Assets

Cash                                                     50,000   $ 60,000

Accounts receivable                            95,000      89,000

Allowance for uncollectible accounts (4.000)       (3.000)

Inventory                                            120,000      140,000

Property, plant, and equipment       295,000    340,000

Accumulated depreciation               (102,000)   (119.000)

Total Assets                                   $ 454.000  $507.000

Liabilities and equity:

Trade accounts payable                $ 62,000    $ 49,000

Interest payable                                   8,000         11.000

Bonds payable                                200,000     200,000

Unamortized bond discount            (15,000)      (10,000)

Equity                                               199,000     257,000

Total liabilities and equity            $454,000  $507,000

Calculation of cash collected from customers in Year 2:

                                                              Year 1     Year 2

Accounts receivable                           95,000    89,000

Sales revenue                                   338,000

Uncollectible written off                      (3,000)

Balance at the end of year 2            (89,000)

Cash collections =                          $341,000

b) The cash collected from customers is the difference between Beginning accounts receivable, credit sales (sales revenue), written off uncollectible, and the balance at the end of year 2.

employers prefer to hire ingenious, resourceful people because ingenious people may be more liable to engage in unethical deportment as they can cerebrate outside of the box

answer; ///decision making under risk;