Question

Tropical Tours reported revenue of $411,000 for its year ended December 31, 2021. Accounts receivable at December 31, 2020 and 2021, were $36,100 and $31,400, respectively. Using the direct method for reporting cash flows from operating activities, Tropical Tours would report cash collected from customers of:

Answer 1

$406,300

Step-by-step explanation:

The computation of the cash collection is shown below:

Cash Collected From Customers is

= Ending account receivable +Revenue For the Year - opening account receivable

= $31,400 + $411,000 - $36,100

= $406,300