Culpepper Inc. had the following information related to last year's sales: What amount would be reported as "cash collections from customers" on the statement of cash flows using the direct method?

Question

Culpepper Inc. had the following information related to last year's sales:  What amount would be reported as "cash collections from customers" on the statement of cash flows using the direct method?

Quizplus · Accepted Answer

Cash collections from customers using the direct method are calculated by adding up all the cash received from customers during the year. Using the information given, we can calculate that cash collections would be $401,500 ($350,000 + $15,000 + $36,500). Therefore, the correct answer is option C.