Last Year Lawn Corporation Reported Sales of $115,000 on Its

question 36

Multiple Choice

Last year Lawn Corporation reported sales of $115,000 on its income statement. During the year, accounts receivable decreased 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)$125,000
• B)$90,000
• C)$140,000
• D)$100,000

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Definitions:

Regression Output

The result of a regression analysis, providing statistical measurements that estimate the relationship between dependent and independent variables.

Polishing Costs

Expenses incurred in the finishing process of manufacturing, where products undergo final improvements, such as polishing or cleaning, to enhance quality.

Cost Report

A financial report summarizing the costs associated with a specific project or department.

Relevant Range

The range of activity within which the assumptions about variable and fixed cost behavior are valid.