Pastel Paints Company Uses the Direct Method for Preparing Its

question 10

Multiple Choice

Pastel Paints Company uses the direct method for preparing its statement of cash flow.Pastel reports the following information regarding 2017: From the income statement:
Sales Revenues,$267,000
Cost of Goods Sold,$210,000
Operating Expenses,$37,000
From the balance sheet:
$$\begin{array} { | l | r | r | } \hline & \text { Beginning Balance } & \text { Ending Balance } \\\hline \text { Accounts Receivable } & \$ 14,500 & \$ 18,300 \\\hline \text { Merchandise Inventory } & 23,500 & 17,800 \\\hline \text { Accounts Payable } & 6,100 & 13,800 \\\hline \text { Accrued Liabilities } & 4,700 & 1,800 \\\hline\end{array}$$ What amount will be shown for collections from customers?

• A)$263,200
• B)$270,800
• C)$267,000
• D)$32,800