A company has a net cash inflow from operating activities of $789,000, a net cash outflow of $50,000 from investing activities and a net cash inflow of $100,000 from financing activities. The company paid $124,000 in interest, $186,500 in income taxes, and $200,000 in cash dividends. Which of the following statements about the statement of cash flows is not correct?
A. The cash dividends of $200,000 paid will be reported as a cash outflow in the cash flow from investing activities section.
B. The statement of cash flows will show a net increase in cash and cash equivalents of $839,000.
C. Supplemental disclosures required for a company using the indirect method include the amount of interest and the amount of income taxes paid.
D. If the direct method is used, the $124,000 of interest paid and the $186,500 of income taxes paid will be reported in the cash flows from operating activities.
Answer: A
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K Company estimates that overhead costs for the next year will be $2,900,000 for indirect labor and $800,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 80,000 direct labor hours are planned for this next year, how much overhead would be assigned to a product requiring 4 direct labor hours?
A. $36.25 B. $185.00 C. $46.25 D. $145.00 E. None of the choices
Generally speaking, Percy, the dog, is lethargic, ill tempered, and ornery. What type of mood dimension does Percy have?
A. appositive affect B. positive affect C. negative intelligence D. negative affect
Which of the following is true of one-way frequency counts?
a. They simply record the responses to a question. b. They let analysts look at the responses to one question in relation to the responses to one or more other questions. c. They include hypothesis testing and regression analysis. d. They are rarely done in data analysis as they do not provide an in-depth interpretation of the collected data.
A company is most likely to utilize the specific identification method if its inventory consists of:
A. A relatively small number of products. B. Unique products. C. Very expensive products. D. All of the other answers are reasons to utilize the specific identification method.