The 2016 income statement of Phillips Co.reported total sales revenue of $460,000;the 2015 balance sheet showed a balance in accounts receivable of $70,000 while the 2016 balance sheet showed a balance in accounts receivable of $100,000.The amount of cash collected from customers was:
A)$530,000.
B)$460,000.
C)$490,000.
D)$430,000.

Question

Quizplus · Accepted Answer

The cash collected from customers is calculated as: Sales Revenue - Increase in Accounts Receivable = $460,000 - ($100,000 - $70,000) = $460,000 - $30,000 = $430,000.

The 2016 Income Statement of Phillips Co