Question

Suppose Columbia Sportswear Company had accounts receivable of $292,959,100 at January 1, 2017, and $211,190,900 at December 31, 2017. Assume sales revenue was $1,147,412,500 for the year 2017.
What is the amount of cash receipts from customers in 2017?

Answer 1

Answer:

$1,229,180,700

Explanation:

Assuming there are no sales tax and credit sales are same in value as receivables

Given;

Accounts receivable at January 1, 2017 = $292,959,100

Accounts receivable at December 31, 2017 = $211,190,900

Sales revenue for the year = $1,147,412,500

amount of cash receipts from customers = x

Using the formula

Account receivable at the start of the period + Sales - Cash received = Account receivable at end of period

$292,959,100 + $1,147,412,500 - x = $211,190,900

x = $292,959,100 + $1,147,412,500 - $211,190,900

  = $1,229,180,700

The amount of cash receipts from customers in 2017 is $1,229,180,700