Maddox Industries Reported Sales of $170,000 on Its Income Statement

question 103

Multiple Choice

Maddox Industries reported sales of $170,000 on its income statement.During the year,accounts receivable decreased by $25,000 and accounts payable decreased by $35,000.Maddox uses the direct method to determine the net cash provided by operating activities on the statement of cash flows.What is the amount of sales revenue adjusted to a cash basis for the year?

• A) $110,000
• B) $160,000
• C) $185,000
• D) $195,000

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Definitions:

Casual Observation

An informal or unstructured method of noticing and recording events or behaviors without systematic analysis.

Unscientific Thinking

Processes of thought that do not adhere to the established or accepted frameworks and methodologies of the scientific community, often lacking empirical evidence.

Groundless Thinking

The process of making conclusions or decisions based on no evidence or rational basis.

Selective Observation

The process of focusing attention on certain aspects of the environment while ignoring others, often influenced by existing beliefs and biases.