During the year sales to customers were $300,000. Accounts receivable from customers at the beginning of the year were $75,000 and at the end of the year $100,000. As a result cash inflows from sales to customers totalled?

A) $225,000
B) $325,000
C) $200,000
D) $275,000

Question

Mackenzie Brown · Accepted Answer

Final Answer : D, Explanation :  To find cash inflows from sales to customers, we need to subtract the change in accounts receivable from sales. Change in accounts receivable = Ending accounts receivable - Beginning accounts receivable = $100,000 - $75,000 = $25,000. Therefore, cash inflows from sales = Sales to customers - Change in accounts receivable = $300,000 - $25,000 = $275,000. So, the correct option is D.

During the year sales to customers were $300,000. Accounts receivable from customers at the beginning of the year were $75,000 and at the end of the year $100,000. As a result cash inflows from sales to customers totalled?

A) $225,000
B) $325,000
C) $200,000
D) $275,000

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During the year sales to customers were $300,000. Accounts receivable from customers at the beginning of the year were $75,000 and at the end of the year $100,000. As a result cash inflows from sales to customers totalled?A) $225,000B) $325,000C) $200,000D) $275,000

Definitions

Learning Objectives

Learning Objectives

Related questions

During the year sales to customers were $300,000. Accounts receivable from customers at the beginning of the year were $75,000 and at the end of the year $100,000. As a result cash inflows from sales to customers totalled?

A) $225,000
B) $325,000
C) $200,000
D) $275,000