The most recent balance sheet and income statement of Oldaker Corporation appear below:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets: Cash and cash equivalents$31 $29 Accounts receivable 73 79 Inventory 44 45 Property, plant and equipment 728 590 Less accumulated depreciation 253 242 Total assets$ 623 $ 501 Liabilities and stockholders' equity: Accounts payable$56 $63 Accrued liabilities 21 22 Income taxes payable 26 28 Bonds payable 121 110 Common stock 33 30 Retained earnings 366 248 Total liabilities and stockholders' equity$ 623 $ 501 Income StatementSales$ 921Cost of goods sold 575Gross margin346Selling and administrative expense 117Net operating income229Income taxes 69Net
income$ 160The company paid a cash dividend of $42 and it did not dispose of any property, plant, and equipment. The company did not retire any bonds payable or repurchase any of its own common stock. The following questions pertain to the company's statement of cash flows.The net cash provided by (used in) operating activities for the year was:
A. $8
B. $229
C. $152
D. $168
Answer: D
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Under current standards of the FASB, liabilities include
A) only legal obligations. B) both legal and illegal obligations. C) both legal and nonlegal obligations. D) legal, nonlegal, and illegal obligations.
Your final proofreading step in report writing should be for spelling, punctuation, grammar, and other mechanical errors
Indicate whether the statement is true or false
Trade-in allowances, sometimes called PMs or spiffs, are given to retailers or wholesalers to pass on to the retailers' salesclerks for aggressively selling certain items.
Answer the following statement true (T) or false (F)
Digerolamo Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below:Activity Cost PoolActivity MeasureActivity RateSupporting assemblyDirect labor-hours (DLHs)$3.55per DLHProcessing batchesNumber of batches$189.35per batchProcessing ordersNumber of orders$59.35per orderServing customersNumber of customers$1,159.00per customerThe cost of serving customers, $1,159.00 per customer, is the cost of serving a customer for one year.Carlacci Corporation buys only one of the company's products which Digerolamo Enterprises sells for $18.85 per unit. Last year Carlacci Corporation ordered a total of 1,500 units
of this product in 4 orders. To fill the orders, 9 batches were required. The direct materials cost is $8.15 per unit and the direct labor cost is $2.60 per unit. Each unit requires 0.15 DLHs.According to the ABC system, the total cost of the activity "Processing batches" for this customer this past year was closest to: A. $189.35 B. $1,704.15 C. $59.35 D. $1,763.50