Question 1: When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from financing activities generally affect
a. Net income, current assets, and current liabilities.
b. Noncurrent assets.
c. Noncurrent liability and the equity accounts
d. Both noncurrent assets and noncurrent liabilities.
e. Equity accounts only
Question 2: Last year, Smith Company sold 10,000 units of its only product. If sales increase by 15% in the current year, how will unit variable cost and unit fixed cost be affected?
Unit Variable Cost Unit Fixed Cost
a. Remains Constant Remains Constant
b. Increases Decreases
c. Decreases Remains Constant
d. Remains Constant Decreases
e. Remains Constant Increases
Question 3: Calculate the cost of goods manufactured for the period in question.
Beginning Direct Materials $25,000
Ending Direct Materials 30,000
Beginning Goods in Process 55,000
Ending Goods in Process 64,000
Beginning Finished Goods 80,000
Ending Finished Goods 67,000
Cost of Goods Sold for the period 540,000
Sales revenues for the period 1,254,000
Operating expenses for the period 232,000