Cash collection Stanley Company’s

Exercise 12-7 Cash Collections—Direct Method

Stanley Company’s comparative balance sheets included accounts receivable of $80,800 at De- cember 31, 2013, and $101,100 at December 31, 2014. Sales reported by Stanley on its 2014 income statement amounted to $1,450,000. What is the amount of cash collections that Stanley will report in the Operating Activities section of its 2014 statement of cash flows assuming that the direct method is used?