Bold Company's 2016 income statement reported total sales revenue of $250,000. During 2016, accounts receivable decreased by $20,000 and accounts payable increased $10,000. How much cash was collected from customers during 2016?

Question

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The decrease in accounts receivable indicates that more cash was collected than the sales revenue reported. Therefore, cash collected = Sales revenue + Decrease in accounts receivable = $250,000 + $20,000 = $270,000.

Bold Company's 2016 Income Statement Reported Total Sales Revenue of $250,000