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Unformatted text preview: $663 decrease is added to sales per the income statement of $129,000 to determine the cash collections from customers reported in the cash flow statement of $129,663. If the accounts receivable balance had increased, the cash collected from customers would be determined by subtracting the increase in the accounts receivable balance from the sales balance because an increase in accounts receivable means your customers owe you the cash for their purchases (your sales). Accounts Receivable Beginning balance 19,230 Sales 129,000 129,663 Collections Ending balance 18,567...
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This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.
- Spring '09