Question

Tim Company had sales of $30,000, increase in accounts payable of $5,000, decrease in accounts receivable of $1,000, increase in inventories of $4,000, and depreciation expense of $4,000. What was the cash collected from customers?

Answer 1

Answer:

$31,000

Explanation:

The computation of the cash collected from customers is shown below:

Cash collected from customers = Sales + Decrease in accounts receivable

                                                    = $30,000 + $1,000

                                                    = $31,000

We simply added the sales and the Decrease in accounts receivable so that the accurate amount can come

All other information which is given is not relevant. Hence, ignored it