Johnson, Inc

question 13

Multiple Choice

Johnson, Inc. owns control over Kaspar, Inc. Johnson reports sales of $400,000 during 2021 while Kaspar reports $250,000. Kaspar transferred inventory during 2021 to Johnson at a price of $50,000. On December 31, 2021, 30% of the transferred goods are still held in Johnson's inventory. Consolidated accounts receivable on January 1, 2021 was $120,000, and on December 31, 2021 is $130,000. Johnson uses the direct approach in preparing the statement of cash flows.How much is cash collected from customers in the consolidated statement of cash flows?

• A) $590,000.
• B) $610,000.
• C) $625,000.
• D) $635,000.
• E) $650,000.

---

Definitions:

Transitional Words

Words or phrases used to link sentences and paragraphs together cohesively.

Nuclear Explosion

An immensely powerful explosion resulting from the sudden release of energy upon the splitting (fission) or merging (fusion) of atomic nuclei, used both as weapons and in certain scientific applications.

Roaches

Common name for certain insects of the order Blattodea, known for their resilience and tendency to inhabit human dwellings.

Career Choice

The decision-making process regarding one's professional path or occupation, often based on interests, qualifications, and market demand.