Johnson, Inc

question 62

Multiple Choice

Johnson, Inc. owns control over Kaspar Inc, Johnson reports sales of $400,000 during 2013 while Kaspar reports $250,000. Kaspar transferred inventory during 2013 to Johnson at a price of $50,000. On December 31, 2013, 30% of the transferred goods are still in Johnson's inventory. Consolidated accounts receivable on January 1, 2013 was $120,000, and on December 31, 2013 is $130,000. Johnson uses the direct approach in preparing the statement of cash flows. How much is cash collected from customers in the consolidated statement of cash flows?

• A) $590,000.
• B) $610,000.
• C) $625,000.
• D) $635,000.
• E) $650,000.

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Definitions:

Mentally Rotating Objects

The cognitive ability to visualize objects in three dimensions and predict their appearance when rotated.

Multiple-choice Test

A form of assessment where participants select the correct answer from several options provided for each question.

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