Question - During the current year, Tachnic Inc., made cash sales of $285,000 and credit sales of $460,000. During the year, accounts receivable decreased by $32,000.
a. Compute for the current year the amount of:
1. Net sales reported as revenue in the income statement.
2. Cash received from collecting accounts receivable.
3. Cash received from customers.
b. Write a brief statement explaining why cash received from customers differs from the amount of net sales.