Trade Receivables Arising from Sales to Customers Amounted to $35,000

question 88

Multiple Choice

Trade receivables arising from sales to customers amounted to $35,000 and $40,000 at the beginning and end of the year,respectively.Profit reported on the income statement for the year was $120,000.Exclusive of the effect of other adjustments,the cash flows from operating activities,prepared using the indirect method,is

• A)$120,000.
• B)$155,000.
• C)$115,000.
• D)$125,000.

---

Definitions:

Form Utility

The value added to goods through a change in form, making them more desirable to consumers.

Marketing Function

A role or operation that relates to promoting, selling, and distributing a product or service, including market research, advertising, and sales.

Ownership Utility

The value or benefit that comes from owning a product or service, above and beyond its functionality or use.

Place Utility

The value added to products by having them available at a location where they are needed or wanted by consumers.