Question Completion:
Extracts from the financial statements of Cruz, Inc. for the year ended December 31, 2019:
Sales Revenue for 2019 $326,000
2019 2018
Accounts Receivable $27,000 $33,300
Cash balance 62,800 15,700
Answer:
Cruz, Inc.
a) Cash received from sales to customers for year 2019:
$292,700 (after deducting the $27,000 owed the previous year)
b) The net increase or decrease in cash for year 2019:
= $47,100
Explanation:
Accounts Receivable
Accounts Title Debit Credit
Beginning balance $27,000
Sales $326,000
Cash receipts $319,700
Ending balance $33,300
Total cash receipts from customers = $319,700
less beginning balance owed 27,000
Cash receipts from sales to customers for year 2019 $292,700
Cash increased from $15,700 to $62,800, an increase of $47,100.
