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RJB Reported Sales of $200,000 and an Increase in Accounts

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Essay

RJB reported sales of $200,000 and an increase in accounts receivable of $30,000 during 2011. Under the direct method, calculate what would be RJB's cash collected from customers during 2011?


Definitions:

Book Value

The value of an asset according to its balance sheet account balance, taking into consideration the cost of the asset minus depreciation.

Total Net Assets

The sum of all assets minus the liabilities, representing the owner's equity in a company.

Total Capital

The sum of a company's debt and equity, representing the total funds available for its operations and growth.

Association

A group of people organized for a joint purpose or to carry out a common goal.

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