Firm X cash sales for the month are $300,000 and its accounts receivable payments for the month are $50,000.What is its total incoming cash flow for the month if its beginning cash for the month is $50,000 and there are no other cash inflows for the month?

Question

Quizplus · Accepted Answer

Total incoming cash flow for the month = cash sales + accounts receivable payments + beginning cash
= $300,000 + $50,000 + $50,000
= $400,000
Therefore, the answer is D, $350,000 is not correct as it does not include the beginning cash.

Firm X Cash Sales for the Month Are $300,000 and Its