Chartered Financial Analyst Level 1

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Answer: 2,070.

To calculate the cash received from customers, adjust the revenue by the net change in accounts receivable for the year. The formula is: **Cash Received = Revenue - (Ending Accounts Receivable - Beginning Accounts Receivable)** Substituting the given values: 2,100 - (230 - 200) = 2,070 Option B is incorrect because it adds the change in cash to revenues instead of adjusting for accounts receivable. Option C is incorrect because it adds the change in accounts receivable to revenue rather than subtracting it.

Author: LeetQuiz Editorial Team

Quick Answer

Answer-first summary for fast verification

Answer: 2,070.

Author: LeetQuiz Editorial Team

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An analyst gathers the following financial data (in $millions) for a company: Year 2 Year 1 Revenues 2,100 2,000 Accounts receivable 230 200 Cash 70 50 The cash received from customers (in$ millions) for Year 2 is:

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2,070.

62.5%

2,120.

25.0%

2,130.

12.5%