Avatar Company Uses the Direct Method to Prepare Its Statement

question 35

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:
$$\begin{array}{l}\begin{array} { l r } \text { - Sales revenue: } & \$ 240,000 \\\text { - Interest revenue: } & \$ 1,000 \\\text { - Accounts receivable beginning balance: } & \$ 35,000 \\\text { Accounts receivable ending balance: } & \$ 31,000\end{array}\\\text { There were no amounts reported for Interest receivable }\end{array}$$
In the operating activity section of the statement of cash flows, what amount would be shown for total cash receipts?

• A) $244,000
• B) $237,000
• C) $245,000
• D) $235,000

---

Definitions:

Identity Versus Role Confusion

Fifth stage of Erikson’s theory of psychosocial development, where adolescents face the challenge of figuring out who they are.

Frontal Cortex

The front part of the cerebral cortex involved in decision making, problem solving, and controlling behavior and emotions.

Puberty

A developmental stage where adolescents undergo physical and hormonal changes, leading to sexual maturity.

Emotional

Pertains to feelings, emotions, or mood, often influencing behavior and perception.