Accounts Receivable Arising from Sales to Customers Amounted to $35,000

question 43

Multiple Choice

Accounts receivable arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year, respectively.Profit reported on the income statement for the year was $120,000.Ignoring the effect of any other adjustments, the cash flow provided (used) by operating activities, prepared using the indirect method, is

• A)$120,000.
• B)$125,000.
• C)$155,000.
• D)$115,000.

---

Definitions:

Private Ownership

The holding of personal assets by individuals or corporations allowing for the control and benefiting from the use of those assets, contrasted with public or state ownership.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.

Branch Plants

Factories, offices, or other operations set up in a country by a company that is based in another country, often to take advantage of lower production costs.

Low-Wage

Employment that remunerates workers with pay significantly below the average for the labor market.