10 A trader provided the following information: Payables: opening balance = $4,000; closing balance = $5,000. Payments made = $20,000 Receivables: opening balance = $7,000; closing balance = $9,000. All sales are on credit. Inventory: opening balance = $5,500; closing balance = $2,500. Gross profit margin = 25% How much cash has been collected from the customers? Cash collected from the customers during the year was $32,000. Cash collected from the customers during the year was $28,000. O Cash collected from the customers during the year was $26,000. Cash collected from the customers during the year was $30,000.
10 A trader provided the following information: Payables: opening balance = $4,000; closing balance = $5,000. Payments made = $20,000 Receivables: opening balance = $7,000; closing balance = $9,000. All sales are on credit. Inventory: opening balance = $5,500; closing balance = $2,500. Gross profit margin = 25% How much cash has been collected from the customers? Cash collected from the customers during the year was $32,000. Cash collected from the customers during the year was $28,000. O Cash collected from the customers during the year was $26,000. Cash collected from the customers during the year was $30,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:10
A trader provided the following information:
Payables: opening balance = $4,000; closing balance = $5,000. Payments made = $20,000
Receivables: opening balance = $7,000; closing balance = $9,000. All sales are on credit.
Inventory: opening balance = $5,500; closing balance = $2,500.
Gross profit margin = 25%
How much cash has been collected from the customers?
Cash collected from the customers during the year was $32,000.
Cash collected from the customers during the year was $28,000.
Cash collected from the customers during the year was $26,000.
Cash collected from the customers during the year was $30,000.
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