Assume a company had sales of $372,000 (all on account) and net income of $60,000. It provided the following excerpts from its balance sheet: This YearLast YearCurrent assets: Accounts receivable$ 40,000$ 46,000Inventory$ 53,000$ 50,000Prepaid expenses$ 13,000$ 11,000Current liabilities: Accounts payable$ 38,000$ 44,000Accrued liabilities$ 18,000$ 15,000Income taxes payable$ 13,000$ 10,000If the credits to the company’s accumulated depreciation account were $21,000, then based solely on the information provided, the company’s cash collections from customers would be: Multiple Choice $375,000. $381,000. $366,000. $378,000.

Solution... Collection from customer = Beginning receivables + credit sales - ending…

Answered: Assume a company had sales of $372,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Assume a company had sales of $372,000 (all on account) and net income of $60,000. It provided the following excerpts from its balance sheet:

	This Year	Last Year
Current assets:
Accounts receivable	$ 40,000	$ 46,000
Inventory	$ 53,000	$ 50,000
Prepaid expenses	$ 13,000	$ 11,000
Current liabilities:
Accounts payable	$ 38,000	$ 44,000
Accrued liabilities	$ 18,000	$ 15,000
Income taxes payable	$ 13,000	$ 10,000

If the credits to the company’s accumulated depreciation account were $21,000, then based solely on the information provided, the company’s cash collections from customers would be:

Multiple Choice

$375,000.
$381,000.
$366,000.
$378,000.

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions