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Wellington Inc -On Wellington's Statement of Cash Flows, Using the Direct Method

question 21

Multiple Choice

Wellington Inc. uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ended December 31, 2015: $Wellington Inc. uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ended December 31, 2015: \begin{array} { l r r } \text { Sales Revenue } & \$ 291,300 \\ \text { Interest Revenue } & 1,000 \\ \text { Gain on Sale of Plant Assets } & 6,000 \\ \text { Total Revenues and Gains } && \$ 298,300 \\ \text { Cost of Goods Sold } & 145,000 \\ \text { Salaries and Wages Expense } & 49,000 \\ \text { Depreciation Expense-Plant Assets } & 16,000 \\ \text { Other Operating Expense } &25,000 \\ \text { Interest Expense } &3,500 \\ \text { Income Tax Expense } & \underline{7,800}& \\ \text { Total Expenses } & &\underline{ 246,300} \\ \text { Net Income } & &\underline{\$ 52,000} \\ \hline \end{array} -On Wellington's statement of cash flows, using the direct method, what amount will be shown for total cash receipts from operating activities? A) $267,000 B) $299,300 C) $253,000 D) $254,000$ $\begin{array} { l r r } \text { Sales Revenue } & \$ 291,300 \\\text { Interest Revenue } & 1,000 \\\text { Gain on Sale of Plant Assets } & 6,000 \\\text { Total Revenues and Gains } && \$ 298,300 \\\text { Cost of Goods Sold } & 145,000 \\\text { Salaries and Wages Expense } & 49,000 \\\text { Depreciation Expense-Plant Assets } & 16,000 \\\text { Other Operating Expense } &25,000 \\\text { Interest Expense } &3,500 \\\text { Income Tax Expense } & \underline{7,800}& \\\text { Total Expenses } & &\underline{ 246,300} \\\text { Net Income } & &\underline{\$ 52,000} \\\hline\end{array}$
-On Wellington's statement of cash flows, using the direct method, what amount will be shown for total cash receipts from operating activities?

Definitions:

Body Transcendence

A psychological state in which individuals perceive the self as extending beyond the physical body, often associated with peak experiences or deep meditative states.

Body Preoccupation

Body preoccupation involves an excessive focus on body image or physical appearance, often leading to significant distress or impairment in social, occupational, or other important areas of functioning.

Ego Preoccupation

Ego preoccupation is an intense focus or concern with one's own interests, desires, and well-being, sometimes at the expense of others' needs or feelings.

Disengagement Theory

The view that older adults and society withdraw from one another as older adults approach death.