Lui Company's 2010 income statement reported total sales revenue of $350,000.The 2009-2010 comparative balance sheets showed that accounts receivable increased by $20,000.The 2010 "cash receipts from customers" would be:

Question

Quizplus · Accepted Answer

We can use the formula: 
Cash receipts from customers = Total sales revenue + Decrease in accounts receivable - Increase in accounts receivable 
As the accounts receivable increased by $20,000, we need to subtract this amount from the total sales revenue. 
Cash receipts from customers = $350,000 - $20,000 = $330,000. Thus, the correct answer is C).

Lui Company's 2010 Income Statement Reported Total Sales Revenue of $350,000.The