Alex Company Prepares Its Statement of Cash Flows Using the Direct

question 128

Multiple Choice

Alex Company prepares its statement of cash flows using the direct method for operating activities. For the year ended December 31, 2015, Alex Company reports the following activity: $\begin{array}{lr}\text { Sales on account } & \$ 1,400,000 \\\text { Cash sales } & 740,000 \\\text { Decrease in accounts receivable } & 610,000 \\\text { Increase in accounts payable } & 72,000 \\\text { Increase in inventory } & 48,000 \\\text { Cost of qood sold } & 1,050,000\end{array}$ What is the amount of cash collections from customers reported by Alex Company for the year ended December 31, 2015?

• A) $2,140,000
• B) $2,010,000
• C) $2,750,000
• D) $1,530,000

---

Definitions:

Juvenile Melanoma

A rare, benign skin condition in children, also known as Spitz nevus, that resembles melanoma.

Oral Candidiasis

A fungal infection in the mouth caused by the overgrowth of Candida species, often presenting as white lesions on the tongue or inner cheeks.

Mucosa

The moist, inner lining of some organs and body cavities, such as the nose, mouth, lungs, and the gastrointestinal tract.

Pacifier

A rubber, plastic, or silicone nipple given to an infant to suck upon for comfort and to soothe teething pain or distress.