Avatar Company Uses the Direct Method to Prepare Its Statement

question 81

Multiple Choice

Avatar Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for the year 2015: 1) Sales Revenue, $515,000
2) Accounts Receivable, beginning balance, $92,000
"3) Accounts Receivable, ending balance, $57,000
In the operating activities section of the statement of cash flows, what amount will be shown for collections from customers?"

• A)$550,000
• B)$458,000
• C)$149,000
• D)$366,000

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Definitions:

Baghdad

The capital city of Iraq, with a rich history as a center of learning and culture, historically known as one of the greatest cities of the Muslim world during the Islamic Golden Age.

Invasion of Iraq

Refers to the 2003 military action led by the United States and its allies to remove Saddam Hussein from power.

Coalition Provisional Authority

The governing body established by the United States and its coalition partners to rule Iraq following the ousting of Saddam Hussein in 2003, until the establishment of the Iraqi government.

Iraqi Army

The land component of the Iraqi military forces responsible for ground-based military operations.