Wireless Technologies reports sales of $50 million.Accounts receivable at the beginning and end of the year are $5 million and $7 million,respectively.What is the amount of cash received from customers?
A)$50 million.
B)$52 million.
C)$48 million.
D)$55 million.

Question

Quizplus · Accepted Answer

We need to calculate the amount of cash received from customers, which would be the sales revenue minus the increase in accounts receivable. 
Sales revenue = $50 million 
Increase in accounts receivable = $7 million - $5 million = $2 million 
Therefore, cash received from customers = $50 million - $2 million = $48 million. 
Hence, the correct answer is Choice C.

Wireless Technologies Reports Sales of $50 Million