The financial statements of New World, Inc., provide the following information for the current year: Dec. 31 Jan. 1Accounts receivable $ 273,000 $ 241,500 Inventory $ 262,500 $ 252,000 Prepaid expenses $ 67,200 $ 63,000 Accounts payable (for merchandise) $ 237,300 $ 221,550 Accrued expenses payable $ 66,150 $ 72,450 Net sales $ 3,097,500 Cost of goods sold $ 1,627,500 Operating expenses (including $ 367,500 depreciation of $94,500) Compute the amount of cash received from customers during the current year. Select one:a. $3,066,000b. $3,097,500c. $3,612,000d. $3,129,000

Question

Randy Tanner

Business

28 March, 19:10

The financial statements of New World, Inc., provide the following information for the current year: Dec. 31 Jan. 1Accounts receivable $ 273,000 $ 241,500 Inventory $ 262,500 $ 252,000 Prepaid expenses $ 67,200 $ 63,000 Accounts payable (for merchandise) $ 237,300 $ 221,550 Accrued expenses payable $ 66,150 $ 72,450 Net sales $ 3,097,500 Cost of goods sold $ 1,627,500 Operating expenses (including $ 367,500 depreciation of $94,500) Compute the amount of cash received from customers during the current year. Select one:a. $3,066,000b. $3,097,500c. $3,612,000d. $3,129,000

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Edwin Carrillo · Answer 1

A $3066000

Explanation:

The formula for cash received from customers is: opening receivables+net sales-closing receivables.

The rationale behind the formula is that opening receivables would have turned cash by year end since current asset last one year maximum.

=$241500+$3097500-$273000

=$3066000