Question

General Mills reported the following information in its 2015 financial statements ($ in millions):

	2015			2014
Balance Sheets:
Accounts receivable, net	$	1,386.7		$	1,483.6
2015 Income statement:
Sales revenue	$	17,630.3

A note disclosed that the allowance for uncollectible accounts had a balance of $25.3 million and $21.0 million at the end of 2015 and 2014, respectively. Bad debt expense for 2015 was $19.8 million.

Required:
Determine the amount of cash collected from customers during 2015. (All sales are on credit. Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).

Answer 1

Allowance for uncollectible accounts at the end of 2014	$21.0
Add : Bad debt expense for 2015	$19.8
Less : Accounts receivable written off (plug)	$15.5
Allowance for uncollectible accounts at th end of 2015	$25.3

Accounts receivable gross at the end of 2014 ($1,483.6+21)	$1,504.6
Add : Sales	$17,630.3
Less : Accounts receivable written off	$15.5
Less : Cash collections	$17,707.4
Accounts receivable gross at the end of 2015 ($1,386.7+$25.3)	$1,412

The amount of cash collected from customers during 2015 = $17,707.4