Cash Collections—Direct Method Emily Enterprises’ comparative balance sheets included accounts…

Cash Collections—Direct Method

Emily Enterprises’ comparative balance sheets included accounts receivable of $224,600 at

December 31, 2007, and $205,700 at December 31, 2008. Sales reported on Emily’s 2008 income

statement amounted to $2,250,000. What is the amount of cash collections that Emily will report

in the operating activities category of its 2008 statement of cash flows assuming that the direct

method is used?