Question 1 - Assume Cramer uses the direct method to prepare the statement of cash flows. Credit sales totaled $780,000, accounts receivable increased by $30,000, and accounts payable decreased by $25,000. How much cash did the company collect from customers?
A. $750,000
B. $775,000
C. $810,000
D. $780,000
Question 2 - Assume Cramer uses the direct method to prepare the statement of cash flows. Income tax payable was $ 6 comma 000$6,000 at the end of the year and $2,600 at the beginning. Income tax expense for the year totaled $59,800. What amount of cash did the company pay for income tax during the year?
A. $59,800
B. $63,200
C. $62,400
D. $56,400