Anjali Shah 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

Cash collections from customers can be calculated as: Beginning Accounts Receivable + Credit Sales - Ending Accounts Receivable = $165,000 + $1,600,000 - $280,000 = $1,485,000.

Anjali Shah Company Had Credit Sales of $1,600,000