Gitis,IncUses the Direct Method to Prepare Its Statement of Cash

question 135

Multiple Choice

Gitis,Inc.uses the direct method to prepare its statement of cash flows.Use the following information reported for 2017: Sales Revenue,$43,000
Interest Revenue,$600
Accounts Receivable,beginning balance,$13,400
Accounts Receivable,ending balance,$26,000
There were no amounts reported for Interest Receivable.
Compute the total cash receipts.

• A)$26,000
• B)$56,400
• C)$31,000
• D)$13,400

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Definitions:

-ase

A suffix used in chemistry to denote enzymes, which are proteins that catalyze biochemical reactions.

Amylase

An enzyme found in saliva and pancreatic fluid that helps in the digestion of carbohydrates by breaking them down into sugars.

Pancreatitis

Inflammation of the pancreas, which can cause severe abdominal pain and is often associated with excessive alcohol consumption or gallstones.

Cholangiopancreatography

A medical imaging technique used to visualize the bile ducts and the pancreatic duct.