Question

Parks Company reported an increase of $370,000 in its accounts receivable during the year 2015. The company's statement of cash flows for 2015 reported $1 million of cash received from customers. What amount of net sales must Parks have recorded in 2015

Answer 1

The answer is $1,370,000

Step-by-step explanation:

Cash received from customers = net sales(revenue) minus increase in accounts receivable.

So to find net sales, we rewrite the formula:

Net sales (revenue) = cash received from customers plus increase in accounts receivable.

=$1,000,000 + $370,000

= $1,370,000.

So Parks Company recorded a net sales of $1,370,000 in 2015