Pastel Paints Company Uses the Direct Method for Its Statement

question 90

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
From the balance sheet:

- On the statement of cash flows,what amount will be shown for collections from customers?

• A)$261,700
• B)$268,300
• C)$265,000
• D)$32,300

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Definitions:

Long-Term Customer Relationships

Building enduring connections with customers, focusing on loyalty and repeated business through ongoing satisfaction and engagement.

Financial Rewards

Benefits given in the form of money, such as salaries, bonuses, or commissions, as compensation for employment or achieving specific goals.

Sales Engineers

Professionals who specialize in understanding complex products or services and use their technical knowledge to help sales teams and customers through the sales process.

Direct Sellers

Sellers who sell face-to-face to consumers—typically in their homes—who use products for their personal use.