Question

A company reported annual sales revenue of $2,200,000 in 2019. During the year, accounts receivable decreased from a $56,000 beginning balance to a $48,000 ending balance. Accounts payable decreased from a $44,000 beginning balance to a $32,000 ending balance. How much is cash received from customers for the year

Answer 1

Answer:

$2,208,000

Explanation:

Calculation to determine How much is cash received from customers for the year

Using this formula

Cash Received=Annual sales revenue+(Beginning balance-Ending balance)

Let plug in the formula

Cash Received=$2,200,000 + ($56,000 – $48,000)

Cash Received=$2,200,000+$8,000

Cash Received = $2,208,000

Therefore The amount of cash received from customers for the year is $2,208,000