Question

During 2022, Splish Brothers Inc. had $156000 in cash sales and $1224000 in credit sales. The accounts receivable balances were $216000 and $254400 at December 31, 2021 and 2022, respectively. Using the direct method of reporting cash flows from operating activities, what was the total cash collected from all customers during 2022?

Answer 1

Answer:

Total Cash collected from all customers  during 2022 is $1,341,600

Explanation:

         Items                                                       Amount

Credit sales                                                     $1,224,000

Add: Accounts Receivable Dec 31,2021  $216,000

Less: Accounts Receivable Dec 31,2022 ($254,400)

Cash collected from credit sales                 $1,185,600

Cash sales                                                        $156,000

Cash collected from credit sales                    $1,185,600

Total Cash collected from all customers      $1,341,600