Question: Using the direct method, if the cash receipts from customers are 5,000,000 and the cash paid for merchandise is 2,000,000 and the net cash flow

Using the direct method, if the cash receipts from customers are 5,000,000 and the cash paid for merchandise is 2,000,000 and the net cash flow from operating activities using the indirect method is 1,000,000, what is the amount for cash paid for operating activities?

A. 9,500,000

B. 5,000,000

C. 3,000,000

D. 1,000,000

E. None of the above

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