SHE Management Corporation Had Accounts Receivable of $105,000 and $120,000

question 99

Multiple Choice

SHE Management Corporation had accounts receivable of $105,000 and $120,000 on January 1, 2013, and December 31, 2013, respectively. Sales on account in 2013 were $310,000. The amount to be reported on the statement of cash flows under the operating activities is:

• A) ($15,000)
• B) $15,000
• C) $325,000
• D) $295,000

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Definitions:

Reverse Stock Split

A corporate action in which a company decreases the number of its existing shares, which increases the share price proportionally, often done to meet stock exchange listing requirements.

Equity

The value of ownership interest in a company, calculated as the difference between its assets and liabilities.

Share Repurchase

A program by which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.