Cash Collections—Direct Method
Pace Industries comparative balance sheets included accounts receivable of $80,800 at December 31, 2013, and $110,300 at December 31, 2014. Sales reported by Pace on its 2014 income statement amounted to $1,588,500.
What is the amount of cash collections that Pace will report in the Operating Activities section of its 2014 statement of cash flows assuming that the direct method is used?
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