Data Solutions reports sales of $100 million.Accounts receivable at the beginning and end of the year are $6 million and $9 million,respectively.What is the amount of cash received from customers?
A)$100 million.
B)$103 million.
C)$97 million.

Question

Quizplus · Accepted Answer

The cash received from customers is calculated by adjusting sales for the change in accounts receivable. The increase in accounts receivable ($9 million - $6 million = $3 million) indicates that not all sales were collected in cash. Therefore, cash received is $100 million - $3 million = $97 million.

Data Solutions Reports Sales of $100 Million