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9 October, 09:59

Hong Kong Clothiers reported revenue of $5,200,000 for its year ended December 31, 2018. Accounts receivable at December 31, 2017 and 2018, were $321,600 and $354,500, respectively. Using the direct method for reporting cash flows from operating activities, Hong Kong Clothiers would report cash collected from customers of:

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Answers (2)
  1. 9 October, 10:03
    0
    Answer: $5167100

    Explanation:

    Cash collection = $5200000+$321600 - $354500 = $5,167,100
  2. 9 October, 10:10
    0
    Hong Kong Clothiers would report cash collected from customers of $5,167,100

    Explanation:

    Cash collected = Beginning accounts receivable + Sales revenue for the year - Ending account receivable

    Therefore, we have:

    Cash collected = $321,600 + $5,200,000 - $354,500 = $5,167,100

    Therefore, the amount of cash collected from customers that would be reported by Hong Kong Clothiers is $5,167,100.
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