Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following information reported for the year 2014: In the operating activity section of the statement of cash flows, what amount would be shown for total cash receipts?

Question

Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following information reported for the year 2014:  In the operating activity section of the statement of cash flows, what amount would be shown for total cash receipts?

Quizplus · Accepted Answer

The total cash receipts can be calculated by adding up the individual sources of cash receipts reported in the operating activity section. From the information provided, we can see that cash was received from customers ($233,000), interest ($3,000), and dividends ($9,000). Therefore, the total cash receipts would be $233,000 + $3,000 + $9,000 = $245,000. The correct answer is choice C.

Avatar Company Uses the Direct Method to Prepare Its Statement