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Wellington,Inc Use the Direct Method to Compute the Total Cash Receipts

question 24

Multiple Choice

Wellington,Inc.uses the direct method to prepare its statement of cash flows.Refer to the following financial statement information for the year ended December 31,2019: $Wellington,Inc.uses the direct method to prepare its statement of cash flows.Refer to the following financial statement information for the year ended December 31,2019: \begin{array}{c} \text {Wellington, Inc,}\\ \text {Income Statement}\\ \text {December 31,2019}\\\begin{array}{|l|r|l|} \hline\text { Sales Revenue } & \$ 289,600 & \\ \hline \text { Interest Revenue } & 2700 & \\ \hline \text { Gain on Sale of Plant Assets } & 6,000 & \\ \hline \text { Total Revenues and Gains } & & \$ 298,300\\ \hline\text { Cost of Goods Sold } & 145,000 \\ \hline \text { Salaries and Wages Expense } & 49,700 \\ \hline \text { Depreciation Expense - Plant Assets } & 16,000 \\ \hline \text { Other Operating Expense } & 24,300 \\ \hline\text { Interest Expense } & 3,500 \\ \hline \text { Income Tax Expense } & 7,800 \\ \hline \text { Total Expenses } &&246,300\\ \hline\text { Net Income }&&\$52,000\\ \hline \end{array}\end{array} Use the direct method to compute the total cash receipts from operating activities. A) $287,400 B) $294,500 C) $260,300 D) $296,100$ $\begin{array}{c}\text {Wellington, Inc,}\\\text {Income Statement}\\\text {December 31,2019}\\\begin{array}{|l|r|l|}\hline\text { Sales Revenue } & \$ 289,600 & \\\hline \text { Interest Revenue } & 2700 & \\\hline \text { Gain on Sale of Plant Assets } & 6,000 & \\\hline \text { Total Revenues and Gains } & & \$ 298,300\\\hline\text { Cost of Goods Sold } & 145,000 \\\hline \text { Salaries and Wages Expense } & 49,700 \\\hline \text { Depreciation Expense - Plant Assets } & 16,000 \\\hline \text { Other Operating Expense } & 24,300 \\\hline\text { Interest Expense } & 3,500 \\\hline \text { Income Tax Expense } & 7,800 \\\hline \text { Total Expenses } &&246,300\\\hline\text { Net Income }&&\$52,000\\\hline\end{array}\end{array}$ Use the direct method to compute the total cash receipts from operating activities.

Definitions:

Trapezoidal Image

A digital or optical image characterized by a trapezoid shape, often as a result of perspective distortion in photography.

Retinal

Pertaining to the retina, the light-sensitive layer of tissue at the back of the inner eye.

Top-down Processing

An approach to perception that involves higher-level cognitive processes controlling lower-level systems, often utilizing pre-existing knowledge to interpret incoming information.

Sensory Adaptation

The procedure through which sense organs gradually become less responsive to persistent stimuli, permitting living beings to focus on variations within their environment.