Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at the beginning and end of the year, respectively. Cash received from customers to be reported on the statement of cash flows using the direct method is:_________.
a. $620,000
b. $600,000
c. $580,000
d. $700,000

The above has been calculated on the premise that the customers are only owing $80000 as at the end of the year,which means $20000 has been paid from the $100000 owed at the beginning of the year.

Also,since the outstanding debt is only $80000, it means the sale amount of $600000 has also been settled in full,as a result $20000 plus $600000,gives $620000 total cash receipt

Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at the beginning and end of the year, respectively. Cash received from customers to be reported on the statement of cash flows using the direct method is:_________. a. $620,000 b. $600,000 c. $580,000 d. $700,000

Respuesta :

Otras preguntas

Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at the beginning and end of the year, respectively. Cash received from customers to be reported on the statement of cash flows using the direct method is:_________.
a. $620,000
b. $600,000
c. $580,000
d. $700,000