Managerial Accounting
Managerial Accounting
3rd Edition
ISBN: 9780077826482
Author: Stacey M Whitecotton Associate Professor, Robert Libby, Fred Phillips Associate Professor
Publisher: McGraw-Hill Education
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Chapter 12, Problem 14Q
To determine

Introduction:

Cash flow statements are the statements that determines the inflow and outflow of cash from three major activities that are carried out in a business, i.e., operating activities, investing activities and financing activities.

To define:

Non-cash investing and financing activities with an example and how are they reported in the cash flow statements.

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Amazon Industries has a break-even point in sales of $920,000, and its variable expenses are 60% of sales. If the company incurred a loss of $27,600 last year, what must have been the actual sales? a) $851,000 b) $890,000 c) $860,000 d) $750,000
Garrison Industries produces synthetic rubber used for industrial applications such as conveyor belts. In 2020, the first year of operations, Garrison produced 5,500 tons of rubber and sold 3,200 tons. In 2021, the company produced the same amount of rubber, and sales were 6,500 tons (i.e., the company sold all of its inventory). In each year, the selling price per ton was $2,500, variable manufacturing costs per ton of rubber were $500, and variable selling expenses were $700 for each ton of rubber sold. Fixed manufacturing costs were $5,500,000, and fixed administrative expenses were $650,000. What is the unit manufacturing cost under absorption costing in the year 2021? need Answer
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Managerial Accounting

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