CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

A firm reports sales of $50,000,000 for the year ending December 31, 2013. Its accounts receivable balances were $6,000,000 on January 1, 2013, and $7,500,000 on December 31, 2013. The company's cash collections from sales ($) for 2013 is closest to ______.
A. 42,500,000
B. 48,500,000
C. 51,500,000
Explanation: The cash collections from sales is equal to sales less the change in receivables: 50,000,000 - (7,500,000 - 6,000,000) = $48,500,000

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