The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following:
a. If sales for the current year were $800,000 and accounts receivable increased $36,000 during the year, what was the amount of cash received from customers?
b. If sales salaries expense for the current years was $110,000 and sales salaries payable decreased $30,000 during the year, what was the amount of cash payments for sales salaries?
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