Analyzing changes in accounts receivable, Braskem S A , a large Brazilian petrochemical company, reported a balance of R$1,594 9 million in Accounts Receivable at the beginning of 2007 and R$1,497 0 million at the end of 2007 Its income statement reported total Sales Revenue of R$12,134 5 million f...

Analyzing changes in accounts receivable, Braskem S.A., a large Brazilian petrochemical company, reported a balance of R$1,594.9

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Analyzing changes in Braskem S.A., a large Brazilian petrochemical company, reported a balance of R$1,594.9 million in at the beginning of 2007 and R$1,497.0 million at the end of 2007. Its income statement reported total Sales Revenue of R$12,134.5 million for 2007. Assuming that Braskem makes all sales on account, compute the amount of cash collected from customers during 2007. Braskem applies Brazilian accounting standards, and reports its results in thousands of reals (R$), the Brazilian currency. In answering this question, assume that Braskem uses either U.S. or IFRS; for purposes of this problem, this choice will not matter.

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...

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Question Posted: Dec 03, 2011 03:26 AM

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Analyzing changes in accounts receivable, Braskem S.A., a large Brazilian petrochemical company, reported a balance of R$1,594.9

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