The following selected account balances appeared on the financial statements of
ID: 2585980 • Letter: T
Question
The following selected account balances appeared on the financial statements of the Washington Company: Accounts receivable, Jan. 1 Accounts receivable, Dec. 31 Accounts payable, Jan. 1 Accounts payable, Dec. 31 Merchandise inventory, Jan. 1 Merchandise inventory, Dec. 31 Sales Cost of merchandise sold $13,000 9,000 4,000 7,000 10,000 15,000 56,000 31,000 The Washington Company uses the direct method to calculate net cash flow from operating activities. 36. Cash payments for merchandise were a. $39,000 b. $33,000 c. $29,000 d. $23,000 Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probablhy sell at $48 per unit. Flyer's management desires a 12.5% profit margin on sales. Its current full cost for the product is $44 per unit.Explanation / Answer
Question 36:
Cash payment for merchandise= cost of purchase-increase in Account payable
Cost of Purchase= Cost of goods sold+ Increase in Inventory
=31000+(15000-10000)
=31000+5000
=36000
Cash payment for merchandise= cost of purchase-increase in Account payable
= 36000-(7000-4000)
=36000-3000
=33000
Option B is correct
Question 43. Option B is correct answer.
The cost which has characteristics of both fixed cost & variable cost is called mixed cost. For example rent of machine includes $ 500 per Month plus $ 5 per hour of use. In this example $500 is fixed cost part & $ 5 per hour is variable cost.
Question 42. Option D is correct
Production Setup expenses can be distributed on the basis of no. of units manufactured.
Question 39: Option C is correct.
A budget statement can be seen as a statement of what management plans to do in future.
As per chegg policy we are allowed to answer only 4 questions at a time.