Question

In the period 2011, Lott Inc. performed services for $120,000 and billed its customers. The company subsequently collected $82,000 of the amount billed. Lott incurred $75,000 of operating expenses but paid cash for only $62,000 of that amount. Lott acquired $30,000 cash from the issue of common stock. The company invested $18,000 cash in the purchase of land. What is the amount of cash flow from revenue that will appear on the statement of cash flows?

Answer 1

Answer:

The amount of cash flow from revenue that will appear on the statement of cash flows is $120,000.

Explanation:

the amount pf cash flow from revenue that will appear on the statement of cash flows is $120,000 because irrespective of whether it is collected or not he must consider the full value of accounts receivable and the collection amount out of the account receivable will be adjusted in the cash flow from operating activities.

Therefore, The amount of cash flow from revenue that will appear on the statement of cash flows is $120,000.