Johnson, Inc

question 96

Multiple Choice

Johnson, Inc.owns control over Kaspar, Inc.Johnson reports sales of $400,000 during 2018 while Kaspar reports $250,000.Kaspar transferred inventory during 2018 to Johnson at a price of $50,000.On December 31, 2018, 30% of the transferred goods are still held in Johnson's inventory.Consolidated accounts receivable on January 1, 2018 was $120,000, and on December 31, 2018 is $130,000.Johnson uses the direct approach in preparing the statement of cash flows.How much is cash collected from customers in the consolidated statement of cash flows?

• A) $590,000.
• B) $610,000.
• C) $625,000.
• D) $635,000.
• E) $650,000.

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Definitions:

Trade Flows

The movement of goods and services across borders, reflecting the import and export activities between countries.

Skilled Workers

Individuals who have acquired special skills, training, knowledge, and abilities in their work.

Unskilled Workers

Individuals in the workforce who possess limited or no specific skills in their job roles and typically perform simple tasks that require little training.

Wage Differential

The difference in wages earned by workers in different jobs, sectors, or locations, often influenced by factors like skill levels, demand, and living costs.