The Company's Activities for the Year Ended December 31, 2021

question 60

Multiple Choice

The Company's activities for the year ended December 31, 2021 included the following: • Income tax expense for the year was $30,000.
• Sales for the year were $650,000.
• Accounts payable decreased $10,000 in 2021.
• Selling and administration expenses for the year totaled $200,000.
• Accounts receivable increased $20,000 in 2021.
• The Company's cost of goods sold in 2021 was $325,000.
• The Company's inventory decreased $15,000 during the year.
What is the cash receipts from customers under the direct method?

• A)$110,000
• B)$320,000
• C)$670,000
• D)$630,000

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Definitions:

Cash Register

A machine used in businesses to calculate and record sales transactions, and to store money.

Immigrants

People who have moved to a country from one or more other countries, usually for permanent residence.

Delivery Firm

A business specialized in transporting documents, packages, or goods from one location to another.

Company Programs

Strategic initiatives or schemes implemented by businesses to achieve certain goals, such as employee development, corporate social responsibility, or product innovation.