Thomas Inc

question 110

Multiple Choice

Thomas Inc. uses the direct method to prepare its statement of cash flows. Refer to the following information reported for the year 2014: Sales Revenue, $39,000
Interest Revenue, $500
Accounts Receivable, beginning balance, $13,000
Accounts Receivable, ending balance, $26,000
There were no amounts reported for Interest Receivable.
In the operating activities section of the statement of cash flows, what amount will be shown for total cash receipts?

• A)$26,000
• B)$52,000
• C)$26,500
• D)$13,000

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Definitions:

Dealer Market

A dealer market is a financial market mechanism in which dealers buy and sell securities for their own accounts, providing liquidity and pricing to the market.

Over-the-counter (OTC) Market

A decentralized market where securities are traded directly between two parties without the supervision of an exchange.

Real Estate Market

The market segment in which land and the buildings on it are bought, sold, or rented, involving residential, commercial, and industrial properties.

Capital Structure

The mix of different forms of external funds and equity that a company uses to finance its operations and growth.