Avatar Company Uses the Direct Method to Prepare Its Statement

question 103

Multiple Choice

Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following financial statement information for the year 2014:
- On Avatar's statement of cash flows, using the direct method, what amount will be shown for payments to suppliers for Inventory and Other operating expenses?

• A) $162,000
• B) $142,000
• C) $244,000
• D) $136,000

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Definitions:

Mean

The arithmetic average of a set of values, calculated by adding all the values together and then dividing by the number of values.

Standard Deviations

An indicator of how much the values in a collection differ from each other.

Probability Density Functions

Mathematical functions that describe the likelihood of a continuous random variable taking on a particular value.

Continuous Random Variables

Variables capable of assuming countless values within a specified range.