Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014: From the income statement:
Sales Revenues, $265,000
Cost of Goods Sold, $210,000
Operating expenses, $31,000
From the balance sheet: On the statement of cash flows, what amount will be shown for collections from customers?
A)$261,700
B)$268,300
C)$265,000
D)$32,300

Question

Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014: From the income statement:
Sales Revenues, $265,000
Cost of Goods Sold, $210,000
Operating expenses, $31,000
From the balance sheet:  On the statement of cash flows, what amount will be shown for collections from customers?
A)$261,700 
B)$268,300 
C)$265,000 
D)$32,300

Quizplus · Accepted Answer

The Answer of Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014: From the income statement:
Sales Revenues, $265,000
Cost of Goods Sold, $210,000
Operating expenses, $31,000
From the balance sheet:  On the statement of cash flows, what amount will be shown for collections from customers?
A)$261,700 
B)$268,300 
C)$265,000 
D)$32,300

Parmesan Company Uses the Direct Method for Its Statement of Cash