Question

Suppose Columbia Sportswear Company had accounts receivable of $300,612,000 at January 1, 2022, and $215,357,000 at December 31, 2022. Assume sales revenue was $1,232,059,000 for the year 2022.What is the amount of cash receipts from customers in 2022

Answer 1

The cash receipts from customers for Columbia Sportswear Company in 2022 is calculated by adding the beginning accounts receivable to the sales revenue, then subtracting the ending accounts receivable, resulting in $1,317,314,000.

Step-by-step explanation:

The question asks about calculating the cash receipts from customers for Columbia Sportswear Company based on the accounts receivable at the beginning and end of the year, as well as the overall sales revenue for the year. To determine this figure, we use the following equation:

Cash Receipts from Customers = Sales Revenue + Beginning Accounts Receivable - Ending Accounts Receivable

By inserting the provided figures:

Cash Receipts from Customers = $1,232,059,000 + $300,612,000 - $215,357,000

After performing the calculations:

Cash Receipts from Customers = $1,317,314,000

Therefore, the cash receipts from customers for Columbia Sportswear Company in 2022 amounted to $1,317,314,000.