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Working Backward: Accounts Receivable and the Statement of Cash Flows
Troy Corp.'s statement of cash flows reported an addition of $2,000 for the change in the Accounts Receivable account during the year. Sales on account for the year amounted to $24,500.
Required:
Determine the cash collected on accounts receivable for the year.
On January 1, 2009, the Emming Corporation purchased some machinery. The machinery has an estimated life of 10 years and an estimated residual value of $5,000. The depreciation on this machinery was $20,000 in 2011.
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To begin, read the article The Lowdown on Lean Accounting and describe some of the issues accountants face when switching to a lean manufacturing system
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