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Arch Associates reports the following comparative balance sheets and income statement information. ...

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Accounting

Arch Associates reports the following comparative balance sheets and income statement information.

Arch Associates
Comparative Balance Sheets
12/31/Year 1 12/31/Year 2
Cash $ 16,000 $ 26,000
Accounts receivable 8,000 12,000
Prepaid insurance 14,000 12,000
Inventory 10,000 6,000
Property, plant and equipment 16,000 14,000
Total assets $ 64,000 $ 70,000
Accounts payable $ 12,000 $ 16,000
Salaries payable 14,000 8,000
Long term notes payable 16,000 14,000
Stockholders' equity 22,000 32,000
Total liabilities and equity $ 64,000 $ 70,000

Income Statement
Year Ended 12/31/Year 2
Revenue $ 150,000
Cost of goods sold 60,000
Gross margin 90,000
Operating expense 40,000
Net income $ 50,000

The amount of cash collected from customers during Year 2 was:

Multiple Choice

$146,000.

$142,000.

$154,000.

$150,000.

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