Statement of cash flows : This statement reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period. Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are purchase of inventory, payment of salary, sales, and others. Investing activities: Investing activities refer to the activities carried out by a company for acquisition of long term assets. The examples for investing activities are purchase of equipment, long term investment, sale of land, and others. Financing activities: Financing activities refer to the activities carried out by a company to mobilize funds to carry out the business activities. The examples for financing activities are purchase of bonds, issuance of common shares, and others. To Prepare: The statement of cash flows of Company R.

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Chapter 21, Problem 21.27E

To determine

Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period.

Operating activities: Operating activities refer to the normal activities of a company to carry out the business. The examples for operating activities are purchase of inventory, payment of salary, sales, and others.

Investing activities: Investing activities refer to the activities carried out by a company for acquisition of long term assets. The examples for investing activities are purchase of equipment, long term investment, sale of land, and others.

Financing activities: Financing activities refer to the activities carried out by a company to mobilize funds to carry out the business activities. The examples for financing activities are purchase of bonds, issuance of common shares, and others.

To Prepare: The statement of cash flows of Company R.

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Manufacturing overhead is applied based on budgeted direct labor hours. The direct labor budget indicates that 6,200 direct labor hours will be required during the year. The variable overhead rate is $4.10 per direct labor hour. The company's budgeted fixed manufacturing overhead is $92,500 per year, which includes depreciation of $18,400. All other fixed manufacturing overhead costs represent current cash flows. The predetermined overhead rate would be_.help

Manufacturing overhead is applied based on budgeted direct labor hours. The direct labor budget indicates that 6,200 direct labor hours will be required during the year. The variable overhead rate is $4.10 per direct labor hour. The company's budgeted fixed manufacturing overhead is $92,500 per year, which includes depreciation of $18,400. All other fixed manufacturing overhead costs represent current cash flows. The predetermined overhead rate would be_.