Respuesta :
Calculation needed to assess the component pieces of the operating section using the direct approach for the amount collected for sales is
Total potential cash - Ending accounts receivable balance.
Cash that is produced by a company's regular operating procedures is known as operating cash flow. Investors place a high value on a company's capacity to continually produce positive cash flows from its ongoing business operations.
The purpose of drawing up a cash flow statement is to see a company's sources and uses of cash over a specified time period.
You should first subtract any receivables that you are aware are unlikely to be collected before calculating cash collections from accounts receivable. This will leave you with your projected collectible accounts receivable.
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