ACCT-212 Ch.5-6, 15 Test

MedCorp has net income of $81,000 for 2022. They use the indirect method for preparing the statement of cash flows and provides the following information:

$(53,000)

Last year, birch corp's cash account decreased by $6,000. Net cash provided by investing activities was $13,000. Net cash provided financing activities was ($30,000). On the statement of cash flows, net cash provided by operation activities was:

$11,000

Meder corp sells a single product for $20/unit. In 2022, sales revenue was $300,000 and net operating income was $24,000. If total fixed expenses were $96,000 for the year, what was the break-even point in units sold.

$12,000

AAM corporation has 2 divisions: East and West. The following report is for the most recent operating period: The common fixed expenses have been allocated to the division on the basis of sales. The east division' break-even sales is closest to:

$135,897

AAM corp's net income last year was $34,000. The company did not sell or retire any property, plant, and equipment last year. Changes in the select balance sheet accounts for the year are: Based solely on this information, the net cash provided by operating activities for the year would be:

$52,000

Assume the following excerpts from a company's balance sheet. During the year, the company's net income was $195,000 and it did not retire any bonds or issue or repurchase any stock. How much net cash was provided by financing activities.

$57,000

A company produces a single product. Variable product costs are $21/unit and variable selling and administrative expenses are $4/unit. Fixed manufacturing overhead totals $30,000 and fixed selling and administrative expenses total $26,000. Assuming beginning inventory of 0, production of 6,000 units, and sales of 5,600 units what is the dollar value of ending inventory under variable costing:

$8,400

Assume the following excerpts from a company balance sheet: Company sold a piece of equipment for $362,500. The original cost was $565,000 and it had accumulated depreciation of $335,000. There were no sales of ling-term investments in the year. How much is net cash provided by investing?

($1,027,500)

The following events occurred at Alan corp. last year. Based on the above information, what is the net cash provided by (used in) investing activities for the year on the statement of cash flows?

($21,000)

Under variable costing, which of the following would be treated as a product cost?

Direct material cost

Which of the following would not be classified as an operating activity on a firm's statement of cash flows?

Dividends paid to the company's own shareholders

In the statement of cash flows, issuing bonds payable affects the:

Financing activities section

When using a segmented income statement, how are common fixed costs allocated to the segments?

They should not be allocated to the segments

Which of the following is true for companies using absorption costing?

Unit products costs can change as a result of the number of units manufactured

A cost that would not be included in product cost under both absorption costing and variable costing is:

Variable manufacturing costs

When computing the net cash flow provided by operating activities using the indirect method, which item would NOT be added to the net income?

decrease in accounts payable

When allocating common fixed expense to a company's segments, one should

NOT allocate common costs to segments

If the degree of operating leverage is 4, then a 1% change in quantity sold should result in a 4% increase in

Net operating income

Which of the following would not affect the break even point?

Number of units sold

In a statement of cash flows, a change in the income taxes payable account would be recorded in the:

Operating activities section

Which of the following should be classified as a financing activity on the statement of cash flows?

Purchase of the company's own stock

Which of the following would be classified as financing activity on the statement of cash flows?

Repurchasing of capital stock from owners

Hay corp has just segmented last year's income statement into ten product lines. the eco is curious as to the effect of dropping one of the product lines at the start of last year would have been on overall company profit. What is the best number for the CEO to look at to determine the effect of this elimination on the net operating income of the company as a whole>

the product line's segment margin