Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following financial statement information for the year 2014:
-On Avatar's statement of cash flows, using the direct method, what amount will be shown for total cash receipts?
A) $240,000
B) $245,000
C) $244,000
D) $241,000

Question

Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following financial statement information for the year 2014:  
-On Avatar's statement of cash flows, using the direct method, what amount will be shown for total cash receipts?
A) $240,000 
B) $245,000 
C) $244,000 
D) $241,000

Quizplus · Accepted Answer

B) Calculations: $240,000 + ($35,000 - $31,000) + $1,000 = $245,000

Avatar Company Uses the Direct Method to Prepare Its Statement