4. General Company reported the following information in its 2015 financial stat

Question

4.         General Company reported the following information in its 2015 financial statements ($ in millions):

2015

2014

Balance Sheet:

Accounts Receivable, net

$ 953

$ 1,084

2015 Income Statement:

   Sales Revenue

$4,271

   Bad Debt Expense

       14

A note disclosed that the allowance for uncollectible accounts had a balance of $18 million and $16 million at the end of 2015 and 2014, respectively.

Required: Determine the amount of cash collected from customers during 2015.

2015

2014

Balance Sheet:

Accounts Receivable, net

$ 953

$ 1,084

2015 Income Statement:

   Sales Revenue

$4,271

   Bad Debt Expense

       14

Explanation / Answer

Accounts Receivable beginning $ 1084

Add: Sales during the year $ 4271

Less: Amt uncollectible $ 16

Less: Accounts Receivable at the end $ 953

Balance is Cash received from customers $ 4386

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