Question & Answer: its income statement. During the year, accounts receivable decreased by $33,000 and accounts payable decreased by…..

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.

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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.

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