The financial statements of Allegro, Inc., provide the following information:?

Question

The financial statements of Allegro, Inc., provide the following information:

Dec. 31 Jan. 1

Accounts receivable 210,000 246,000

Inventory 246,000 288,000

Prepaid expenses 15,000 6,000

Accounts payable (for merchandise) 138,000 156,000

Accrued expenses payable 24,000 12,000

Net sales 2,100,000

Cost of goods sold 1,080,000

Operating expenses (including depreciation of $90,000) 720,000

Calculate the amount of cash received from customers during the current year.

Answer 1

Beg. AR $246,000

add Sales $2,100,000

less receipts from customers ($?)

= Ending AR $210,000

From this, you can work out that receipts from customers totalled $2,136,000.