Final answer:
The correct answer is option E. he amount of cash received from customers by Wireless Technologies is calculated by adjusting the sales by the change in accounts receivable. Based on the sales of $50 million and the accounts receivable change from $5 million to $7 million during the year, the cash received is $48 million.
Step-by-step explanation:
To determine the amount of cash received from customers by Wireless Technologies, we need to analyze the given sales and accounts receivable figures. Wireless Technologies reported sales of $50 million. The accounts receivable at the beginning of the year was $5 million, and at the end of the year, it was $7 million. To calculate the cash received, we adjust the sales by the change in accounts receivable over the year.
To do this, we subtract the beginning accounts receivable from the ending accounts receivable and adjust the sales figure accordingly.
Here's the calculation:
Cash Received = Sales - (Ending Accounts Receivable - Beginning Accounts Receivable)Cash Received = $50 million - ($7 million - $5 million)Cash Received = $50 million - $2 millionCash Received = $48 million
Therefore, the correct option in the final answer is option E, which states that the amount of cash received from customers is $48 million.