Fundamental Managerial Accounting Concepts
Fundamental Managerial Accounting Concepts
8th Edition
ISBN: 9781259569197
Author: Thomas P Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip R Olds
Publisher: McGraw-Hill Education
Question
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Chapter 14, Problem 2ESB

a)

To determine

Calculate the operating activities section of the cash flow statement.

b)

To determine

Explain the reason why the account receivable was added or subtracted from net income in part (a).

c)

To determine

Explain the reason why the account payable was added or subtracted from net income in part (a).

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Jordan Incorporated manufactures water polo balls, which sell for $50. The company expects to incur the following costs during the coming year: variable manufacturing cost, $15 per unit; variable selling and administrative cost, $5 per unit; fixed manufacturing cost, $35,000; and fixed selling and administrative cost, $25,000. What is the break-even volume in sales dollars?   Multiple Choice   $100,000   $65,000   $50,000   None of these.   $75,000
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