Answer:
The cash collected from customers = $230,000
Explanation:
The cash collected from customers to be reported on a direct method statement of cash flows is = Net sales + decrease in accounts receivable.
or, Net sales - Increase in accounts receivable
Given,
Net sales = $200,000
Beginning accounts receivable = $100,000
Ending accounts receivable = $70,000
Decrease in accounts receivable = $100,000 - $70,000 = $30,000
Putting the values into the formula, we can get
Net sales + decrease in accounts receivable
$200,000 + $30,000 = $230,000
The cash collected from customers = $230,000
