Company G
Company G Reported the Following Information -Refer to the Figure Company G

question 69

Multiple Choice

Company G
Company G reported the following information:
$\begin{array}{llr} \text {Accounts receivable, December 31 , Year 2 } &\$122,000\\ \text { Accounts receivable, December 31, Year 1 } &113,000\\ \text { Sales (all on credit) for Year 2 } &850,000\end{array}$

-Refer to the figure Company G.How much cash was collected from customers during Year 2?

• A) $841,000
• B) $859,000
• C) $963,000
• D) $972,000

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Definitions:

Salvage Value

An asset's expected selling price once it has concluded its functional life.

Financially Attractive

Describes an investment, project, or acquisition that promises significant financial returns or benefits.

Discount Rate

This particular interest rate is utilized for assessing the present value of cash flows to be received in the future, as per discounted cash flow analysis.

Profitability Index

A financial tool used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.