Final answer:
To calculate cash collected from customers using the direct method, take the reported revenue of $409,000 and adjust for the decrease in accounts receivable from $36,300 to $31,700 to find a cash collection of $413,600. However, this answer is not among the options provided, implying there may be a mistake in the question or the options.
Step-by-step explanation:
The question pertains to the calculation of cash collected from customers under the direct method for reporting cash flows from operating activities. To find the cash collected from customers for Tropical Tours, we start with the reported revenue of $409,000 for the year ended December 31, 2024. We then adjust this amount by the change in accounts receivable during the year. The accounts receivable decreased from $36,300 on December 31, 2023 to $31,700 on December 31, 2024.
Using the direct method, the calculation is as follows:
Start with the reported revenue: $409,000Adjust for the change in accounts receivable: $36,300 - $31,700 = $4,600 increase in cashAdd the increase in cash to the reported revenue: $409,000 + $4,600 = $413,600 cash collected from customers
Therefore, the cash collected from customers by Tropical Tours using the direct method for the year ended December 31, 2024, would be $413,600 which is not one of the options provided.