Clarion Industries Manufactures Computer Equipment and Provides Financing for Purchases

question 52

Essay

Clarion Industries manufactures computer equipment and provides financing for purchases by its customers.Clarion reported sales and interest revenues of $61,324 million for 2010.The
balance sheet showed current and noncurrent receivables of $25,752 million at the beginning
of 2010 and $28,448 million at the end of 2010.Compute the amount of cash collected
from customers during 2010.

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Definitions:

Year-End Costs

Expenses or costs incurred by a business at the end of the fiscal year; these may include adjustments, accruals, and prep for financial reporting.

Inventory Cost Flow

An accounting method that determines the value of sold inventory and ending inventory, can be FIFO, LIFO, or Average Cost.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue. It represents the company's bottom line.