The Company's Activities for the Year Ended December 31,2018 Included

question 19

Multiple Choice

The Company's activities for the year ended December 31,2018 included the following: • Income tax expense for the year was $30,000.
• Sales for the year were $650,000.
• Accounts payable decreased $10,000 in 2018.
• Selling and administration expenses for the year totaled $200,000.
• Accounts receivable increased $20,000 in 2018.
• The Company's cost of goods sold in 2018 was $325,000.
• The Company's inventory decreased $15,000 during the year.
What is the cash receipts from customers under the direct method?

• A)$110,000
• B)$320,000
• C)$325,000
• D)$630,000

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Definitions:

Criticality Scale

A system of ranking that assesses the importance or risk level of certain processes or components within an operation or system.

General Item

A non-specific term that can refer to any product or piece of merchandise without special requirements or characteristics.

Capacity Allocation

The process of assigning available resources or production capacity to meet varying demands, crucial for optimizing output and meeting customer needs.

Supply Chain Performance

Involves the assessment of how effectively and efficiently a supply chain operates, often evaluated through metrics such as delivery speed, quality, and cost efficiency.