Last Year Lawton Company Reported Sales of $110,000 on Its

question 33

Multiple Choice

Last year Lawton Company reported sales of $110,000 on its income statement. During the year, accounts receivable decreased by $10,000 and accounts payable decreased 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) $125,000
• B) $120,000
• C) $115,000
• D) $105,000

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Definitions:

Groundwater Flow

The process by which water moves through the pore spaces or fractures in soils and rocks beneath the Earth's surface.

Water Table

The depth beneath the surface where the soil is completely filled with water.

Cave Roof

The upper surface or ceiling of a cave, formed by natural geological processes.

Sinkhole

A depression or hole in the ground caused by the collapse of a surface layer, often resulting from the dissolution of limestone by water.