Question

a company reported annual sales revenue of $2,475,000. during the year, accounts receivable decreased from a $63,000 beginning balance to a $54,000 ending balance. accounts payable decreased from a $49,500 beginning balance to a $36,000 ending balance. how much is cash received from customers for the year? select one: a. $2,484,000 b. $2,493,000 c. $2,475,000 d. $2,470,500 e. $2,421,000

Answer 1

To calculate the cash received from customers, we need to consider the change in accounts receivable. In this case, the correct answer is $2,484,000. Therefore, the correct option is a. $2,484,000.

Step-by-step explanation:

To calculate the cash received from customers for the year, we need to consider the change in accounts receivable. The decrease in accounts receivable indicates that cash was received from customers. The change in accounts receivable is calculated by subtracting the ending balance from the beginning balance, which in this case is $63,000 - $54,000 = $9,000.

Since the company reported annual sales revenue of $2,475,000, the cash received from customers can be calculated by adding the change in accounts receivable to the reported sales revenue: $2,475,000 + $9,000 = $2,484,000.

Therefore, the correct answer is $2,484,000 (option a).