On the statement of cash flows, the sales adjusted to a cash basis would be:

A) $976,000
B) $982,000
C) $984,000
D) $980,000

Question

On the statement of cash flows, the sales adjusted to a cash basis would be:A) $976,000B) $982,000C) $984,000D) $980,000

Rapheal Dikro · Accepted Answer

Final Answer : C, Explanation :  The sales adjusted to a cash basis can be calculated by adding any decrease in accounts receivable (since that means cash was received) and subtracting any increase in accounts receivable (since that means cash was not yet received). Looking at the information provided, we see that beginning accounts receivable was $44,000, ending accounts receivable was $56,000, and $4,000 of sales were made on account. Therefore, the sales adjusted to a cash basis would be:$980,000 (total sales) + $44,000 (decrease in accounts receivable) - $56,000 (increase in accounts receivable) - $4,000 (sales on account) = $984,000

On the statement of cash flows, the sales adjusted to a cash basis would be:

A) $976,000
B) $982,000
C) $984,000
D) $980,000

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