Chatham Corp. reported sales revenue of $98,000 on their income statement for 2011. From the beginning until the end of 2011, accounts receivables decreased by a net amount of $9,000. How much "cash collections from customers" should Chatham report for 2011 on their statement of cash flows?

Question

Quizplus · Accepted Answer

The cash collections from customers can be calculated by adding the decrease in accounts receivable to the sales revenue. Therefore, $98,000 (sales revenue) + $9,000 (decrease in accounts receivable) = $107,000.