2A4D LARRY MITCHELL, BAILEY COMPANY’S CONTROLLER, IS GATHERING DATA F...
92.
CSO: 2A4d
LOS: 2A4d
Larry Mitchell, Bailey Company’s controller, is gathering data for the Statement of Cash
Flows for the most recent year end. Mitchell is planning to use the direct method to
prepare this statement, and has made the following list of cash inflows for the period.
•
Collections of $100,000 for goods sold to customers.
•
Securities purchased for investment purposes with an original cost of
$100,000 sold for $125,000.
•
Proceeds from the issuance of additional company stock totaling $10,000.
The correct amount to be shown as cash inflows from operating activities is
a.
$100,000.
b.
$135,000.
c.
$225,000.
d.
$235,000.