Pastel Paints Company uses the direct method for preparing its statement of cash flow. Pastel reports the following information regarding 2017: From the income statement:
Sales Revenues, $265,000
Cost of Goods Sold, $213,000
Operating Expenses, $32,000
From the balance sheet: What amount will be shown for collections from customers?
A) $261,200
B) $268,800
C) $265,000
D) $33,000

Question

Pastel Paints Company uses the direct method for preparing its statement of cash flow. Pastel reports the following information regarding 2017: From the income statement:
Sales Revenues, $265,000
Cost of Goods Sold, $213,000
Operating Expenses, $32,000
From the balance sheet:  What amount will be shown for collections from customers?
A) $261,200 
B) $268,800 
C) $265,000 
D) $33,000

Quizplus · Accepted Answer

The Answer of Pastel Paints Company uses the direct method for preparing its statement of cash flow. Pastel reports the following information regarding 2017: From the income statement:
Sales Revenues, $265,000
Cost of Goods Sold, $213,000
Operating Expenses, $32,000
From the balance sheet:  What amount will be shown for collections from customers?
A) $261,200 
B) $268,800 
C) $265,000 
D) $33,000

Pastel Paints Company Uses the Direct Method for Preparing Its