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 6ATC

a)

To determine

Calculate the net income and cash flow from operating activities of Company S for the year 2012 and 2013.

b)

To determine

The manner in which Company S was able to pay its bills with negative operating cash flows in the year 2012 and 2013.

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You have reviewed the utility bills for your company. You have determined that the highest and lowest bills were $6,200 and $4,100 for the months of December and July. If your company produced 850 and 400 units in these months, what was the fixed cost associated with the utility bill?
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