Anjili Company had credit sales of $1,600,000. The beginning accounts receivable balance was $165,000 and the ending accounts receivable balance was $280,000. Using the direct method of reporting cash flows from operating activities, what were the cash collections from customers during the period?

Question

Quizplus · Accepted Answer

To find cash collections, adjust credit sales by the change in accounts receivable: $1,600,000 - ($280,000 - $165,000) = $1,485,000.

Anjili Company Had Credit Sales of $1,600,000