ReNew Corporation had accounts receivable of $90,000 at the beginning the year and $100,000 at the end of the year. Sales on account for the year amounted to $465,000. The amount to be reported on the statement of cash flows under the operating activities is:
A)$475,000.
B)$ 10,000.
C)($10,000).
D)$455,000.

Question

Quizplus · Accepted Answer

The cash collected from customers is calculated as: Beginning Accounts Receivable + Sales on Account - Ending Accounts Receivable = $90,000 + $465,000 - $100,000 = $455,000.

ReNew Corporation Had Accounts Receivable of $90,000 at the Beginning