In: Accounting
X Company is a service company and prepares monthly financial statements. In March, it billed customers $416,000 for services it provided; in April, it billed customers $363,000 for services it provided. In April, the company received $286,000 from its March customers and $269,000 from its April customers.
Which of the following amounts will appear on X Company's April Income Statement and Statement of Cash Flows?
a. both statements, $269,000
b both statements, $363,000
c Income Statement, $555,000; Statement of Cash Flows,
$779,000
d Income Statement, $363,000; Statement of Cash Flows,
$555,000
e Income Statement, $779,000; Statement of Cash Flows, $555,000
Option D: Income Statement, $363,000; Statement of Cash Flows, $555,000
Explanation:
Income statement records the amount of services that are billed during the month.
Statement of cash flows records the total cash received during the month.
In April, the company billed $ 363,000 and so Income statement will show $ 363,000.
Company received $ 286,000 + $ 269,000 = $ 555,000, and so this will be shown in Statement of cash flows.