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:

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