Assume the 20D income statement reported total sales revenue of $160,000.The 20C-20D,comparative statements of financial position showed that trade receivables increased by $10,000.What was the "cash inflow from customers" for 20D?
A)$140,000.
B)$150,000.
C)$160,000.
D)$170,000.

Question

Quizplus · Accepted Answer

The cash inflow from customers is calculated by adjusting the sales revenue for the change in trade receivables. Since trade receivables increased by $10,000, it means that $10,000 of the sales revenue was not collected in cash. Therefore, the cash inflow from customers is $160,000 (total sales revenue) - $10,000 (increase in trade receivables) = $150,000.

Assume the 20D Income Statement Reported Total Sales Revenue of $160,000.The