Accounts Receivable Arising from Sales to Customers Amounted to $80,000

question 1

Multiple Choice

Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $212,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

• A) $212,000.
• B) $202,000.
• C) $222,000.
• D) $292,000.

---

Definitions:

Salvage Value

The projected sell-on value of an asset upon reaching the end of its operational lifespan.

Useful Life

The estimated duration of time over which an asset is expected to be functional and generate revenue for its owner.

Annual Expected Income

An estimate of the amount of money that is anticipated to be earned over a one-year period from various sources of income.

Salvage Value

An asset's forecasted value after its period of usability has concluded.