Question

Operating Activity Investing Activity Financing Activity A pharmaceutical company buys marketing rights to sell a drug exclusively in East Asian markets. A company records a decrease in its total raw materials inventory from the previous year. Yum Co. uses cash to repurchase 10% of its common stock Fitzi Chemical Co. carns revenue from its cash receipts from royalties. Len Corp. reported net sales of $300 million last year and generated a net income of $66.00 million. Last year's accounts receivable increased by $29 million. What is the maximum amount of cash that Len Corp. received from sales last year? a. $203.25 million b. $271.00 million c. $95.00 million d. $135.50 million

Answer 1

Answer:

b. $271.00 million

Explanation:

Cash received = Net sales - Increase in accounts receivable

Cash received = $300 million - $29 million

Cash received = $271 million

Hence, the maximum amount of cash that Len Corp. received from sales last year is $271 million