Hong Kong Clothiers reported revenue of $5,000,000 for its year ended December 31, 2018. Accounts receivable at December 31, 2017 and 2018, were $320,000 and $355,000, respectively. Using the direct method for reporting cash flows from operating activities, Hong Kong Clothiers would report cash collected from customers of:
A) $4,965,000.
B) $5,000,000.
C) $5,035,000.
D) $5,045,000.

Question

Quizplus · Accepted Answer

11ea937b_365a_4fc1_a419_ef10078c606e_TB2599_00 Cash collections = $320,000 + 5,000,000 - 355,000 = $4,965,000

Hong Kong Clothiers Reported Revenue of $5,000,000 for Its Year