The Following Items Were Reported on the Balance Sheets and Income

question 68

Multiple Choice

The following items were reported on the balance sheets and income statement for Carlton Co.: $\begin{array}{lr}\text { Accounts receivable, December } 31,2017 & \$ 185,000 \\\text { Accounts receivable, December } 31,2018 & 178,000 \\\text { Sales-2018 } & 850,000\end{array}$ What amount would be reported in the Operating Activities section of the statement of cash flows for collections from customers under the direct method assuming that all sales are on credit?

• A)$850,000
• B)$857,000
• C)$843,000
• D)Cannot be determined without further information

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Definitions:

Argonauts

In Greek mythology, the band of heroes who accompanied Jason on his quest to find the Golden Fleece.

Equilibrium Wage

The remuneration level where the quantity of labor available meets the quantity of labor sought.

Pear Pickers

Individuals or workers engaged in the harvesting of pears; often used in discussions related to agriculture, labor, and seasonal employment.

Apple Pickers

Refers to laborers who are employed in the agricultural sector for the purpose of harvesting apples from orchards.