Pastel Paints Company Uses the Direct Method for Preparing Its

question 5

Multiple Choice

Pastel Paints Company uses the direct method for preparing its statement of cash flow. Pastel reports the following information regarding 2017: From the income statement:
Sales Revenues, $265,000
Cost of Goods Sold, $213,000
Operating Expenses, $32,000
From the balance sheet: What amount will be shown for collections from customers?

• A) $261,200
• B) $268,800
• C) $265,000
• D) $33,000

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Definitions:

Demand Stimulation

A set of measures aimed at increasing consumer desire and ability to purchase goods and services.

Fed

Informally refers to the Federal Reserve System, the central banking system of the United States, responsible for monetary policy.

Credit Availability

The ease with which individuals or businesses can obtain loans or access credit from financial institutions.

Military-Industrial Complex

A concept referring to the close relationship between a country's military and the defense industry that supplies it, often suggesting influences on national policy.