19. In its accrual basis income statement for the year ended December 31, 2012, Nelson Company reported revenue of $3,500,000. Additional information is as follows: Accounts receivable-- Beg. December 31, 2011 $ 750,000

Net income for 2012 140,000

Accounts receivable--End. December 31, 2012 1,010,000

Nelson should report cash collected from customers in its 2012 statement of cash flows (direct method) in the amount of

a. $3,240,000.

b. $3,100,000.

c. $3,380,000.

d. $3,760,000.

20. Stiggins Corporation had the following account balances for 2012: December 31 January 1

Accounts Payable $67,200 $58,200

Prepaid Rent Expense 24,600 37,200

Accounts Receivable (net) 84,000 66,600

Stiggins' 2012 net income is $450,000. What amount should Stiggins include as net cash provided by operating activities in its 2012 statement of cash flows?

a. $436,200

b. $445,200

c. $453,600

d. $454,200

a. $3,240,000.

b. $445,200

Explanation:

1. Particulars                                    Amount

Beginning account receivable      $750,000

Add: Revenue                                $3,500,000

Less: Ending account receivable$1,010,000

Cash collected from customer    $3,240,000

2.  Particulars                                                      Amount

Net income                                                         $450,000

Adjustment to reconcile net income

Increase account payable                 $9,000

Decrease prepaid rent expenses      $12,600

Increase account receivable              $17,400   $4,200

Net cash provided by operating activities      $454,200

answer; conceptual skills;

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.