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

Quizplus · Accepted Answer

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