Avatar Company Uses the Indirect Method to Prepare the Cash

question 32

True/False

Avatar Company uses the indirect method to prepare the cash flow statement.Please refer to the following section of the comparative balance sheet:
$\begin{array}{|l|r|r|r|}\hline & {2017} &{2016} &{\text { Increase/decrease }} \\\hline \text { Cash } & \$ 33000 & \$ 18000 & \$ 15000 \\\hline \text { Accounts receivable } & 22000 & 35000 & (13000) \\\hline \text { Inventory } & 170000 & 115000 & 55000 \\\hline \text { Total assets } & \$ 225000 & \$ 168000 & \$ 57000 \\\hline\end{array}$ The change in accounts receivable will be shown as a positive cash flow in the adjustments to Profit.

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Definitions:

Rostral

In anatomy, referring to a position toward the front end of the body in quadrupeds or the bottom of the head in humans.

Caudal

At or near the rear or the tail end of an organism.

CNS

The central nervous system, composed of the brain and spinal cord, which processes and sends out neural signals.

PNS

The Peripheral Nervous System, which consists of the nerves and ganglia outside of the brain and spinal cord.