Hope Company reported sales on account of $250,000,an increase in inventory of $70,000,and a decrease in accounts receivable of $40,000.How much cash was collected from customers?

Question

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The cash collected from customers is calculated by adding the decrease in accounts receivable to the sales on account: $250,000 + $40,000 = $290,000. The change in inventory does not affect cash collection from customers.

Hope Company Reported Sales on Account of $250,000,an Increase in Inventory