Parmesan Company Uses the Direct Method for Its Statement of Cash

question 64

Essay

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:
Assume that there were no sales of long-term assets, no interest revenue, and no expenses other than the expenses shown above. Please also assume that accounts payable are for purchases of inventory only.
On the statement of cash flows, what amount will be shown for cash flow from operating activities?
A)$26,800
B)$29,200
C)$23,000
D)$18,600

• A)$26,800
• B)$29,200
• C)$23,000
• D)$18,600

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A structure for presenting information that does not directly state the main point at the beginning, often used to build suspense or interest.

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