- CFA Exams
- CFA Level I Exam
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 23. Understanding Cash Flow Statements
- Subject 2. Preparing the Cash Flow Statement
CFA Practice Question
Beginning accounts receivable $ 50,000
Ending accounts receivable: $ 30,000
Net sales: $600,000
Cost of goods sold: $375,000
Operating expenses: $80,000
Ending accounts receivable: $ 30,000
Net sales: $600,000
Cost of goods sold: $375,000
Operating expenses: $80,000
What was the amount of cash received from customers?
A. $620,000
B. $580,000
C. $630,000
Explanation: Cash received from customers = Net sales + Decrease in Accounts Receivable or - Increase in Accounts Receivable. $600,000 + ($50,000 - $30,000) = $620,000
User Contributed Comments 1
| User | Comment |
|---|---|
| aigulb | 50 relates to PY sales from which 20 was received during current year, so it should be added to CY sales |