Last year, Amber Company reported sales of $200,000 on its income statement.During the year, accounts receivable decreased by $33,000 and accounts payable decreased by $28,000.The company uses the direct method to determine net cash flow from operating activities on the statement of cash flows.The sales revenue adjusted to a cash basis would be:
A) $233,000.
B) $345,000.
C) $400,000.
D) $120,000.

Question

Quizplus · Accepted Answer

Sales revenue adjusted to a cash basis = Reported sales + Decrease in accounts receivable = $200,000 + $33,000
= $233,000

Last Year, Amber Company Reported Sales of $200,000 on Its