Avatar Company Uses the Direct Method to Prepare Its Statement

question 37

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 total net cash flow from operating activities?

• A) $213,000 negative
• B) $32,000 positive
• C) $32,000 negative
• D) $245,000 positive

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Definitions:

Diploid

A cell or organism having two sets of chromosomes, one from each parent, typical of somatic cells in animals and plants.

Chitin

A long-chain polymer of N-acetylglucosamine, a derivative of glucose, found in the exoskeletons of arthropods and cell walls of fungi.

Cellulose

A complex carbohydrate that is the primary component of plant cell walls, providing structural support.

Euglenoids

A diverse group of unicellular protists characterized by their ability to move via flagella and photosynthesize like plants.