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On the statement of cash flows, the ____________ is reconciled with the net cash provided by operating activities.

Multiple Choice

• other income

• net sales

• gross profit

• net income

SweetBerry Ice-creams uses a standard cost system. The following data is available for June:

Actual output	6,000		gallons
Standard material cost	$ 8		per gallon
Material price variance	$ 630		Unfavorable
Material usage variance	$ 2,400		Unfavorable

The actual material cost for June was:

Multiple Choice

• $48,000.

• $50,400.

• $49,770.

• $51,030.

A firm had retained earnings of $130,000 in 20X1 and $168,000 in 20X2. The increase in retained earnings from 20X1 to 20X2 is:

Multiple Choice

• 29.2 percent.

• 22.6 percent.

• 38 percent.

• 129 percent.

Costmore Manufacturing has provided the following operating results for its first year operations:

Beginning inventory of finished goods	0
Units produced (no work in process)	22,000
Units sold	18,000
Units in ending inventory of finished goods	4,000
Sales price	$ 55	per unit
Variable manufacturing costs	$ 25	per unit manufactured
Variable selling and administrative expenses	$ 7	per unit sold
Fixed manufacturing costs for the year	$ 110,000
Fixed selling and administrative expenses for the year	$ 124,000

Using direct costing, the manufacturing margin is:

Multiple Choice

• $550,000

• $540,000

• $480,000

• $450,000

An increase in accounts payable is:

Multiple Choice

• added to the cash flows from investing activities.

• subtracted from the net income when determining the net cash provided by operating activities.

• added to the net income when determining the net cash provided by operating activities.

• not used to calculate the net cash provided by operating activities

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