The 2014 income statement of Collins Co.reported total sales revenue of $115,000 during the current year.The company's comparative The December 31,2013 balance sheets reported showed a balance in accounts receivableAccounts Receivable of $17,500 at the beginning of the year and ,while the 2014 balance sheet showed a balance in accounts receivable of $25,000 at the end of the year.The cash inflow from customers for 2014 during the current year equalswould be:
A) $107,500.
B) $132,500.
C) $115,000.
D) $122,500.

Question

Quizplus · Accepted Answer

Beginning balance + Revenue recognized on account - Cash collections from customers = Ending balance
$17,500 + $115,000 - Cash collections from customers = $25,000
Cash collections from customers = $17,500 + $115,000 - $25,000 = $107,500

The 2014 Income Statement of Collins Co