Problem 1. The following information is available from Sand Corporation's accounting records for the year ended December 31, 2011:
Cash received from customers $870,000
Rent received 10,000
Cash paid to suppliers and employees 510,000
Taxes paid 110,000
Cash dividends paid 30,000
a) Compute cash flow provided by operations for 2011.
Problem 2. The following information was taken from the 2011 financial statement of Planet corporation:
Accounts receivable, January 1, 2011 $ 21,600
Account s receivable, December 31, 2011 30,400
Sales on accounts and cash sales 438,000
Uncollectible accounts (bad debts) 1,000
No accounts receivable were written off or recovered during the year.
a) Determine the cash collected from customers by Planet Corporation in 2011.