Lagos Corp

question 3

Multiple Choice

Lagos Corp. recorded sales of $345,000 in 2006, in addition its accounts receivable and accounts payable balances at the beginning and end of 2006 were as follows: How much cash did Lagos collect from customers in 2006?

• A) $345,000
• B) $320,000
• C) $324,000
• D) $316,000

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Definitions:

Systematic Method

An organized, consistent approach to solving problems or achieving objectives that follows specific guidelines or principles.

Tax Savings

The reduction in tax liability achieved through various deductions, credits, or allowances.

Acquiring Asset

This term involves obtaining control of another company's asset through purchase or merger, enhancing the buyer's resources and capabilities.

Rate Of Return

A financial metric used to measure the amount of return on an investment relative to the investment's cost.