Avatar Company Uses the Direct Method to Prepare Its Statement

question 111

Multiple Choice

Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following information reported for the year 2014:
$\begin{array}{lr}\text { Sales revenue: } & \$ 240,000 \\\text { Accounts receivable beginning balance: } & \$ 35,000 \\\text { Accounts receivable ending balance: } & \$ 31,000\end{array}$
In the operating activity section of the statement of cash flows, what amount would be shown for collections from customers?

• A) $244,000
• B) $236,000
• C) $240,000
• D) $258,000

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Definitions:

Glass Ceiling

An invisible barrier that prevents minorities and women from rising beyond a certain level in a hierarchy, especially in a corporate context.

Minority Advancement

The process or policies aimed at increasing representation, opportunities, and support for groups that are underrepresented or disadvantaged in society or specific sectors.

Hidden Barrier

An unseen or not immediately obvious obstacle that prevents or hinders progress or achievement.

Diversity Issues

Diversity issues pertain to challenges and considerations related to managing a diverse workforce, including cultural, racial, gender, and age differences among employees.