Question

The income statement for Electronic Wonders reports net sales of $91,618 million and cost of goods sold of $69,138 million. An examination of balance sheet amounts indicates accounts receivable increased $1,719 million, inventory increased $869 million, and accounts payable to suppliers decreased $1,953 million.

Required:

Using the direct method, calculate (1) cash received from customers and (2) cash paid to suppliers. (Enter your answer in millions. (i.e., $10,000,000 should be entered as 10).)

Net Sales

Increase in accounts recievable

Cash recieved from customers

Cost of Goods sold

Purchases

Cash paid to suppliers

Answer 1

	Amount in millions
Net sales	$                          91,618
Less: Increase in accounts receivable	$                          (1,719)
Cash received from customers	$                          89,899

	Amount in millions
Cost of Goods sold	$                          69,138
Add: Increase in inventory	$                                869
Add: Decrease in accounts payable	$                             1,953
Cash paid to suppliers	$                          71,960

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