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11 July, 13:27

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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  1. 11 July, 14:44
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    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
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