Question

he following selected account balances appeared on the financial statements of Sanchez Company: Accounts Receivable, January 1 $13,000 Accounts Receivable, December 31 9,000 Accounts Payable, January 1 4,000 Accounts Payable, December 31 7,000 Inventory, January 1 10,000 Inventory, December 31 15,000 Sales 62,000 Cost of Goods Sold 31,000 Sanchez Company uses the direct method to calculate net cash flow from operating activities. Cash received from customers is

Answer 1

Answer:

Cash received from customers is $66,000.

Explanation:

Cash Received from Customers is determined by opening a Total Accounts Receivables  T- Account as follows :

Total Accounts Receivables  T- Account

Debit :

Opening Balance                 $13,000

Sales                                    $62,000

Totals                                   $75,000

Credit:

Closing Balance                    $9,000

Cash (Balancing figure)      $66,000

Totals                                   $75,000

Conclusion:

Cash received from customers is  $66,000.