Parmesan Company Uses the Direct Method for Its Statement of Cash

question 17

Multiple Choice

Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2013: From the income statement:
On the statement of cash flows, what amount will be shown for collections from customers?

• A)$237,000
• B)$243,000
• C)$240,000
• D)$50,000

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Definitions:

Hepatitis B

A serious liver infection caused by the hepatitis B virus that can become chronic and lead to liver cancer or cirrhosis.

Peyer's Patches

Specialized lymphoid nodules located in the wall of the small intestine, playing a key role in immune responses against ingested substances.

Lymph Nodules

Lymph nodules are small, localized clusters of dense tissue found within the lymph system, important for immune responses and filtration of bodily fluids.

Small Intestinal Wall

The layered structure of the small intestine, consisting of mucosa, submucosa, muscularis, and serosa, facilitating nutrient absorption.