Grant Company reported net income of $74,000 and sales revenue of $201,000 for the current year. The company also reported beginning and ending accounts receivable at $25,500 and $16,000, respectively. What was the amount of cash collected from customers?

Question

Philip

Business

14 January, 14:09

Grant Company reported net income of $74,000 and sales revenue of $201,000 for the current year. The company also reported beginning and ending accounts receivable at $25,500 and $16,000, respectively. What was the amount of cash collected from customers?

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Answers (1)

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Nevaeh Williams · Answer 1

Cash Collected from customers = $210,500

Explanation:

As for the provided information,

To calculate the cash collected or received from customers, net income is not required,

Using all the remaining information provided,

Cash received or collected from customers = Opening Accounts Receivables + Sales Revenue for the year - Closing Accounts Receivables

We have,

Opening Accounts Receivables = $25,500

Sales Revenue = $201,000

Closing Accounts Receivables = $16,000

Now putting values in above equation we have,

Cash Collected from customers = $25,500 + $201,000 - $16,000 = $210,500