| Description |
An analyst gathered the information in Exhibit 1 from a company ’s 2018 financial
statements:<table style="width:90%;text-align:center">
<caption>Exhibit 1: 2018 Financial Statements (US dollars, millions)</caption>
<tr><th class="left">Year ended 31 December </th><th>2017 </th><th>2018</th></tr>
<tr><td class="left">Net sales </td><td>245.8 </td><td>254.6</td></tr>
<tr><td class="left">Cost of goods sold </td><td>168.3 </td><td>175.9</td></tr>
<tr><td class="left">Accounts receivable </td><td>73.2 </td><td>68.3</td></tr>
<tr><td class="left">Inventory </td><td>39.0 </td><td>47.8</td></tr>
<tr><td class="left">Accounts payable </td><td>20.3 </td><td>22.9</td></tr>
</table>Based only on the information in Exhibit 1, the company’s 2018 statement of cash
flows in the direct format would include amounts (in US dollars millions) for
cash received from customers and cash paid to suppliers, respectively, that are
closest to:
<table style="width:90%;text-align:center">
<tr><th class="left"> </th><th>Cash received from customers </th><th>Cash paid to suppliers</th></tr>
<tr><td class="left">A </td><td>249.7</td><td>169.7</td></tr>
<tr><td class="left">B </td><td>259.5</td><td>174.5</td></tr>
<tr><td class="left">C </td><td>259.5</td><td>182.1</td></tr>
</table> |