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Answer: 3,800.
The correct answer is **A (3,800)**. Under accrual accounting, if reported revenue exceeds the cash collected, it typically results in an increase in accounts receivable. The formula to calculate cash collected from customers is: \[ \text{Cash collected from customers} = \text{Revenue} - \text{Increase in accounts receivable} \] Substituting the given values: \[ \text{Cash collected from customers} = 5,000 - 1,200 = 3,800 \] **Option B (5,000)** is incorrect because it equals the revenue, ignoring the increase in accounts receivable. **Option C (6,200)** is incorrect as it adds the increase in accounts receivable to revenue, which is not the correct approach.
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An analyst collects the following financial data (in € thousands) for a company: Revenue: 5,000 Beginning cash balance: 2,000 Ending cash balance: 2,000 Increase in accounts receivable: 1,200 Based on this information, the cash received from customers (in € thousands) is:
A
3,800.
B
5,000.
C
6,200.
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