What amount would be reported in the operating activities


Question - The following items were reported on the statement of financial positions and statement of comprehensive income for Online.com:

Accounts receivable, 30 June 2013 $350 000  

Accounts receivable, 30 June 2014 $225 000

Sales for financial year ended 30 June 2014 $1 000 000 

What amount would be reported in the operating activities section of Online.com's statement of cash flows for collections from customers under the direct method, assuming that all sales are on credit?

A. $1 225 000

B. $1 125 000

C. $1 250 000

D. $975 000

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Accounting Basics: What amount would be reported in the operating activities
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