Use the Table for the Question(s)below

question 28

Multiple Choice

Use the table for the question(s) below.
Jeremy founded a company.He issues 200,000 shares of series A stock for his own $100,000 investment.He then goes through three further rounds of investment,as shown below:

-What is the post-money valuation for the series D funding round?

• A)$1.4 million
• B)$1.95 million
• C)$2.025 million
• D)$2.85 million
• E)$3.15 million

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Definitions:

Direct Method

A cash flow statement preparation approach that lists major cash receipts and payments during the period.

Bad Debts Recovered

Previously written off debts that have unexpectedly been collected.

Allowance Method

An accounting technique used to estimate and account for bad debts, allowing companies to anticipate uncollectible accounts receivables.

Bad Debts Expense

An expense account reflecting the value of sales that were made on credit and are unlikely to be collected.