Wellington Inc. uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ended December 31, 2015: On Wellington's statement of cash flows, using the direct method, what amount will be shown for total cash receipts from operating activities?
A)$267,000
B)$299,300
C)$253,000
D)$254,000

Question

Wellington Inc. uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ended December 31, 2015:   On Wellington's statement of cash flows, using the direct method, what amount will be shown for total cash receipts from operating activities?
A)$267,000 
B)$299,300 
C)$253,000 
D)$254,000

Quizplus · Accepted Answer

To calculate total cash receipts from operating activities using the direct method, we need to add up the individual items that represent cash inflows from operating activities. These include:
- Cash collected from customers: $232,000
- Interest received: $3,000
- Total cash receipts from operating activities: $232,000 + $3,000 + $64,300 = $299,300. 
Therefore, the correct answer is B.