Presented Below Is the Operating Activities Section of a Statement

question 120

Multiple Choice

Presented below is the operating activities section of a statement of cash flows for 2014: $\begin{array}{lc}\underline {\text { Operatima activities } }\\\text { Cash collected from customers } & \$ 550,000 \\\text { Cash payments for merchandise } & (150,000) \\\text { Cash payments for operating expenses } & \underline {(275,000) } \\\text { Net cash inflow from operating activities } & \underline {\$ 125,000}\end{array}$ Which method of preparing the operating activities section was used?

• A)The direct method.
• B)The indirect method.
• C)Either method.
• D)Cannot be determined without further information.

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Definitions:

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

Product Life Cycle

Defines the stages that new products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planning.

Maturity Stage

Stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them.

Self-Concept

The image a person has of himself or herself; a component of psychographics.