Concept explainers
Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.
Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.
Cash Receipts: It encompasses all the cash receipts from sale of goods and on account receivable.
The following formula is used to calculate cash receipt from customers:
The amount of cash collected from customers.
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Horngren's Financial & Managerial Accounting, Student Value Edition (5th Edition)
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- Alco Roofing Company’s beginning accounts receivable were $200,000. Ending accounts receivable were $270,000. During the period, credit sales totalled $570,000. How much cash was collected from customers? $640,000 $500,000 $570,000 $470,000arrow_forwardAlco Roofing Company's beginning accounts receivable were $200,000 and ending accounts receivable were $270,000. During the period, credit sales totaled $570,000, How much cash was collected from customers?arrow_forwardThe general ledger of Hubert Corporation provides the following information: End of Year Beginning of Year Accounts Receivable $ 125,000 $ 94, 000 Inventory 280,000 210,000 Accounts Payable 130,000 65,000 The company's net sales for the year were $2,850,000 and cost of goods sold amounted to $1,650,000. Instructions Calculate the following: a) Cash receipts from customers. b) Cash payments to suppliers.arrow_forward
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