Accounts Receivable from Sales to Customers Amounted to $40,000 and $32,000

question 18

Multiple Choice

Accounts receivable from sales to customers amounted to $40,000 and $32,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $110,000. Exclusive of the effect of other adjustments, the net cash flows from operating activities to be reported on the statement of cash flows using the indirect method is

• A) $118,000
• B) $110,000
• C) $102,000
• D) $150,000

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Definitions:

Inputs

Refers to the resources used in the production process, including raw materials, labor, and capital, essential for the creation of goods or services.

Outputs

The final products, services, or results that come from processes or activities within systems or organizations.

Operations-Related Activities

Tasks and processes directly involved in the production and delivery of services or goods.

Hard Rock Café

A global chain of themed restaurants known for its collection of rock and roll memorabilia, dining services, and entertainment.