Receivables and the Statement of Cash Flows The following selected information is provided

The following selected information is provided for Lynez Company. All sales are credit sales and all receivables are trade receivables.

Accounts receivable, January 1 net balance	$125,000
Accounts receivable, December 31 net balance	165,000
Sales for the year	800,000
Uncollectible accounts written off during the year	14,000
Bad debt expense for the year	24,000
Cash expenses for the year	681,000
Net income for the year	95,000

Using the format illustrated in the chapter and the preceding information, answer the following questions:

1. Using the direct method, what is the net cash flow from operations that Lynez Company would report in its statement of cash flows?

2. Assuming the use of the indirect method, what adjustments to net income would be required in reporting net cash flow from operations?

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