Cash collected from customers is calculated as net sales revenue minus increases in accounts receivable.

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Cash collected from customers is calculated as net sales revenue minus increases in accounts receivable because accounts receivable represents the amount of money that customers owe to the company for goods or services that have been sold but not yet paid for. When accounts receivable increases, it means that customers are taking longer to pay their bills, which reduces the amount of cash that the company has on hand.

Cash Collected from Customers Is Calculated as Net Sales Revenue