Reference no: EM132550821

Questions -

Q1. Estes Company sells two types of computer chips. The sales mix is 30% (Chip A) and 70% (Chip B). Chip A has variable costs per unit of $20 and a selling price of $40. Chip B has variable costs per unit of $25 and a selling price of $55. Compute the weighted-average unit contribution margin for Estes?

a. $25.00

b. $23.00

c. $27.00

d. $50.50

Q2. York Ltd. reported a loss of $10,000 for the year. During the year, accounts receivable decreased $3,000, inventory increased $5,000, accounts payable increased by $11,000, and depreciation expense of $6,000 was recorded. Using the indirect method, operating activities

a. used net cash of $23,000.

b. provided net cash of $5,000.

c. used net cash of $17,000.

d. provided net cash of $15,000.

Q3. Net income reported for the current year was $200,000. Depreciation expense was $35,000. During the year, Accounts Receivable and Inventory increased $18,000 and $26,000, respectively. Prepaid Expenses and Accounts Payable decreased $4,000 and $9,000, respectively. There was also a loss on the sale of equipment of $6,000. Using the indirect method, how much cash was provided by operating activities?

a. $210,000

b. $244,000

c. $192,000

d. $182,000