Data Solutions reports sales of $100 million.Accounts receivable at the beginning and end of the year are $6 million and $9 million,respectively.What is the amount of cash received from customers?
A)$100 million.
B)$103 million.
C)$97 million.
D)$109 million.

Question

Quizplus · Accepted Answer

The amount of cash received from customers can be calculated by subtracting the increase in accounts receivable from sales. Increase in accounts receivable = $9 million - $6 million = $3 million. Therefore, cash received from customers = $100 million - $3 million = $97 million. So, the correct choice is C.

Data Solutions Reports Sales of $100 Million