Avatar company uses the direct method to prepare its


Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following information reported for the year 2014:

• Sales revenue: $240,000

• Interest revenue: $1,000

• Accounts receivable beginning balance: $35,000

• Accounts receivable ending balance: $31,000

There were no amounts reported for Interest receivable

In the operating activity section of the statement of cash flows, what amount would be shown for total cash receipts?

                $235,000

                $244,000

                $245,000

 

                $237,000

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Financial Accounting: Avatar company uses the direct method to prepare its
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