Parmesan Company Uses the Direct Method for Its Statement of Cash

question 14

Multiple Choice

Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014: From the income statement:
Sales Revenues, $265,000
Cost of Goods Sold, $210,000
Operating expenses, $31,000
From the balance sheet: On the statement of cash flows, what amount will be shown for collections from customers?

• A)$261,700
• B)$268,300
• C)$265,000
• D)$32,300

---

Definitions:

Social Status

An individual's position within a social hierarchy, which can be determined by factors such as occupation, education, income, and ancestry.

Designer Brands

Brands known for producing high quality, fashionable, and often luxury items designed by well-known fashion designers.

Office Party

A social event organized by a business or organization for its employees, usually to commemorate holidays, achievements, or milestones.

Race

A social construct used to categorize humans based on physical characteristics, such as skin color, ancestry, and genetic traits.