Mercury Corporation Reported the Following Information on Its Financial Statements

question 29

Multiple Choice

Mercury Corporation reported the following information on its financial statements: If the company uses the indirect method to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2014?

• A)$171,000
• B)$215,000
• C)$245,000
• D)$183,000

---

Definitions:

Net Accounts Receivable

The total amount of money owed by customers for purchases made on credit, minus any provision for doubtful accounts.

Sales Returns

Transactions where customers return previously purchased merchandise, resulting in a refund or credit.

Bad Debt Expense

An expense recorded to account for receivables that are not expected to be collected, reflecting credit losses in the financial statements.

Accounts Receivable

Outstanding payments from customers for goods or services a company has already delivered.