Last Year Lawsby Company Reported Sales of $120,000 on Its

question 23

Multiple Choice

Last year Lawsby Company reported sales of $120,000 on its income statement.During the year,accounts receivable increased by $10,000 and accounts payable increased by $15,000.The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows.The sales revenue adjusted to a cash basis for the year would be:

• A)$105,000
• B)$125,000
• C)$110,000
• D)$115,000

---

Definitions:

Leadership Capacity

The potential or ability for individuals to lead effectively, often developed through experience, training, and personal growth.

Variable Cost

Expenses that change in proportion with the level of production or sales volume, such as raw materials and direct labor costs.

Total Cost

The sum of all expenses incurred in producing a good or service, including both fixed and variable costs.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.