Converting Net Income to Cash Flow Middle East Importers reports the following accrual basis information for a recent month.
|
Total revenue from sales to customers |
$90,000 |
|
Total expenses |
69,000 |
|
Net income |
$21,000 |
In addition, the following account information is known:
|
Accounts Receivable |
Accounts Payable |
|
|
Beginning of month balance |
$9,000 |
$15,000 |
|
End of month balance |
21,000 |
9,000 |
Required Determine (a) the amount of cash collected from customers during the month, (b) the amount of cash paid out for expenses during the month, and (c) the net cash flow for the month.