The Managerial Accountant at the Clothing Factory Is Required to Determine

question 20

Essay

The managerial accountant at the Clothing Factory is required to determine the amount of cash received from consumers during the year. The managerial accountant reported that the beginning balance in accounts receivable on January 1, 20X2 was $600,000. There were $10,200,000 in sales revenue recorded on the income statement, and the ending balance in accounts receivable on December 31, 20X2 was $420,000. Calculate the amount of cash collections at the Clothing Factory during 20X2 and discuss how the managerial accountant can ensure that all cash transactions from operating activities are recorded during the year. What occurs when accounts receivable increases? What occurs when accounts receivable decreases?

---

Definitions:

Fragrant

Fragrant refers to having a pleasant or sweet smell, commonly associated with flowers, plants, and certain chemical compounds.

Cyclohexane

A saturated hydrocarbon with the chemical formula C6H12, commonly used as a solvent or in the manufacture of other chemicals.

Methylcyclohexane

A saturated hydrocarbon with the formula C7H14, characterized by a methyl group attached to a cyclohexane ring, used as a solvent and in organic synthesis.

Cycloheptane

A cyclic alkane with the molecular formula C7H14, consisting of a ring of seven carbon atoms.