Table 17 -5
Parmesan Company Uses the Direct Method for Its

question 47

Multiple Choice

Table 17 -5
Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2017:
From the income statement:
$$\begin{array} { l l } \text { Revenues: } & \$ 240,000 \\\text { Cost of goods sold: } & \$ 190,000 \\\text { Operating expenses: } & \$ 25,000\end{array}$$ $\begin{array}{lcc}\text { From the balance sheet: } & \text { Beginning balance } & \text { Ending balance } \\\text { Accounts receivable: } & \$ 12,000 & \$ 15,000 \\\text { Inventory: } & \$ 22,000 & \$ 18,000 \\\text { Accounts payable: } & \$ 7,000 & \$ 12,000 \\\text { Accrued liabilities: } & \$ 3,000 & \$ 1,200\end{array}$ Note: accounts payable relate to inventory purchases; accrued liabilities relate to operating expenses
-Refer to Table 17-5.On the cash flow statement,what amount will be shown for collections from customers?

• A) $237,000
• B) $243,000
• C) $240,000
• D) $50,000

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Definitions:

Murillo

Bartolomé Esteban Murillo, a Spanish Baroque painter known for his religious works, genre scenes, and depictions of street urchins and beggars in Seville.

Offerings to the Virgin

Religious practices involving gifts or sacrifices to the Virgin Mary as a form of veneration or prayer.

Spiritual Food

Metaphorical nourishment that sustains one's spiritual life or well-being, often associated with religious rituals, prayers, or meditations.

Juan Sánchez Cotán

A Spanish painter renowned for his highly realistic still life paintings, often characterized by a deep exploration of light and form.