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STATEMENT OF CASH FLOW: Using the direct method, if the cash receipts from customers are 4,000,000 and the net cash flow from operating activities using

STATEMENT OF CASH FLOW: Using the direct method, if the cash receipts from customers are 4,000,000 and the net cash flow from operating activities using the indirect method is 1,500,000 and the cash paid for merchandise is 700,000, using the direct method, how much is the cash paid for operating expenses?

a. 6,300,000

b. 3,300,000

c. 2,500,000

d. 1,800,000

e. None of the above

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