Pastel Paints Company Uses the Direct Method for Its Statement

question 154

Multiple Choice

Pastel Paints Company uses the direct method for its statement of cash flow.It reports the following information regarding the year 2014: From the income statement:
Sales Revenues,$265,000
Cost of Goods Sold,$210,000
Operating expenses,$31,000
Net Income $24,000
From the balance sheet:

- Assume that there were no sales of long-term assets,no Interest Revenue,and no expenses other than the expenses shown above.Also,assume that Accounts Payable are for purchases of inventory only.On the statement of cash flows,what amount will be shown for the net cash flow from operating activities?

• A)$64,900
• B)$31,400
• C)$23,500
• D)$18,600

Comprehend the role of forecasting in revenue management and its importance in predicting customer behavior.

Identify and evaluate strategies to address perishable assets and optimize resource utilization.

Demonstrate knowledge of supply planning and its integration with revenue management strategies.

Understand the optimization techniques used in revenue management to maximize revenue or minimize costs.

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Definitions:

Cause And Effect

A relationship where one event (the cause) makes another event happen (the effect), often used to describe phenomena in various fields of study.

Post Hoc, Ergo Propter Hoc

A logical fallacy that assumes a cause-and-effect relationship simply because one event followed another in time.

Fallacy Of Logic

An error in reasoning that renders an argument invalid, often undermining the argument's logical structure.

Inductive Reasoning

A method of reasoning in which specific observations or sets of observations are used to make general conclusions.