Question

This fact pattern provides information for Q#26 and Q#27. Consulting Revenues in Year 2 were $162. Consulting Accounts Receivable at Dec. 31 in Years 1, 2 and 3, respectively were: $33, $29 and $34, respectively. Cash collected from clients in Year 3 was $142. Enter positive values without signs, without '' signs and without commas. Click Save and Submit to save and submit. Click Save All Answers to save all answers 2 20 Fid # $ 4 % 5 a 6 & 8 E R T Y U O F I J K к c с V B N M

27

Answer 1

1. Year 2 Cash Collection - 166

Accounts Receivable Year 2 Opening 33 Consulting Revenue 162 Closing (29) Cash Collection 166

Computation of Cash Collection = Opening Receivables + Revenue - Closing Receivables

= 33 + 162 - 29

Cash Collection = 166

2. Year 3 Consulting Revenue - 147

Consulting Revenue Year 3 Opening 29 Consulting Revenue 147 Closing (34) Cash Collection 142

Computation of Cash Collection = Opening Receivables + Revenue - Closing Receivables

142   = 29 + Revenue - 34

   Revenue  = 34 + 142 - 29

Revenue  = 147