Firm A cash sales for the month are $200,000 and its accounts receivab

Firm A cash sales for the month are $200,000 and its accounts receivable payments for the month are $100,000.

What is its total incoming cash flow for the month if its beginning cash for the month is $50,000 and there are no other cash inflows for the month?
A) $100,000
B) $150,000
C) $300,000
D) $350,000

ANSWER

Answer: C
Explanation: C) The total incoming cash flow for the month = cash sales for the month + accounts receivable payments for the month (which are inflows from prior months’ sales) = $200,000 + $100,000 = $300,000.