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 net cash flow from operating activities?
A) $213,000 negative
B) $32,000 positive
C) $32,000 negative
D) $245,000 positive

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 net cash flow from operating activities?
A) $213,000 negative 
B) $32,000 positive 
C) $32,000 negative 
D) $245,000 positive

Quizplus · Accepted Answer

B) Calculations: $245,000 - $213,000 = $32,000

Avatar Company Uses the Direct Method to Prepare Its Statement