Accounts Receivable from Sales to Customers Amounted to $40,000 and $32,000

question 18

Multiple Choice

Accounts receivable from sales to customers amounted to $40,000 and $32,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $110,000. Exclusive of the effect of other adjustments, the net cash flows from operating activities to be reported on the statement of cash flows using the indirect method is

• A) $118,000
• B) $110,000
• C) $102,000
• D) $150,000

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Definitions:

Interest Calculations

The process of determining the amount of interest due or earned over a specified period of time, often based on principal amount, rate, and time.

Note Issued

A monetary tool signifying a commitment to pay a determined sum of money on a designated future date.

Quick Assets

Resources that can be rapidly turned into cash without a decrease in value, such as cash itself, tradable securities, and money owed from accounts receivable.

Temporary Investments

Investments in securities or other assets that are intended to be sold within a short period, typically within a year.