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Last year, Amber Company reported sales of $200,000 on its income statement. During the year, accounts receivable decreased by $33,000 and accounts payable decreased by $28,000. The company uses the direct method to determine net cash flow from operating activities on the statement of cash flows. The sales revenue adjusted to a cash basis would be:
a.$345,000.
b.$400,000.
c.$233,000.
d.$120,000.
Expert Answer
| Please find below the answer and please give thumbs up | |
| Statementshowing Computations | |
| Paticulars | Amount |
| Sales | 200,000.00 |
| Add descrease in Accounts receivable | 33,000.00 |
| Total collections | 233,000.00 |
| The sales revenue adjusted to a cash basis would be: c.$233,000. |
