The following information is taken from the accounts of Birmingham Ltd for year ended 30 June 2016.
- What was the amount of cash received from customers?
A) $305 000
B) $465 000
C) $485 000
D) None of the answers provided

Question

The following information is taken from the accounts of Birmingham Ltd for year ended 30 June 2016. 
- What was the amount of cash received from customers?
A) $305 000 
B) $465 000 
C) $485 000 
D) None of the answers provided

Quizplus · Accepted Answer

The cash received from customers can be calculated using the formula: 
Revenue + Decrease in Accounts Receivable - Increase in Accounts Receivable = Cash Received from Customers. 
In the accounts provided, revenue is $1,450,000, decrease in Accounts Receivable is $355,000, and increase in Accounts Receivable is $630,000. 
Substituting in the formula, we get: 
$1,450,000 + ($355,000) - ($630,000) = $1,175,000 - $630,000 = $545,000. 
Therefore, the correct option is B) $465,000.

The Following Information Is Taken from the Accounts of Birmingham