Question

The following information relates to Curried Away Hot Air Balloons, Inc Advertising Costs $ 17,200 Sale Salary 570,000 President's salary 59.000 Office Rent 63.500 Manufacturing Equipment Depreciation 1,500 Indirect Materials Used 5400 Tendet Labor 12.00 Factory Repair and Maintenance Direct Materials Used 29,800 Direct Labor Delivery Vehicle Depreciation 660 Administrative Sale 25.500 How much was carried manufacturing overtid? A. $ 62,200 B. 518,000 C. 5 20,00 D. $ 18,00 Click to select your answer Kentucky Company was the indirect method to prepare the statement of cash flow Refer to the following come statement Kecky Company Income Statement Yearded December 31, 2019 Sales Reven $247.000 Interest Reve 2,200 Gain on Sale of Plant A5,900 Total Revents and a $255, 100 Cost of Goods Sold 115.000 Salary Expense 45,000 Depreciation Tipse 10,000 Other Operating Expenses 24,000 Interexpo 1.800 Income Tax Exp. 500 Total Fixpenses 204,300 Net Income (Low) 5 50.800 Additional information provided by the compactades the following 1. Current other than can increased by $ 21,000 2. Current libis decreased by 5 1,200 Caput the cash provided by foreign A5321 CS600 D.SI

Answer 1

1.

Manufacturing equipment depreciation = $1,500

Indirect materials used = $5,400

Indirect labor = $12,600

Factory repair and maintenance = $800

Total manufacturing overheads = Manufacturing equipment depreciation + Indirect materials used + Indirect labor + Factory repair and maintenance

= 1,500 + 5,400 + 12,600 + 800

= $20,300

Correct option is (c)

2.

Particulars	$	$
Cash flow from Operating Activities
Net income	50,800
Add: Adjustments to reconcile net income to net cash provided by operating activities
Depreciation expense	10,000
Gain on sale of plant assets	- 5,900
Current assets increase	- 21,000
Current liabilities decrease	- 1,200
Net cash provided by Operating Activities		$32,700

Net cash provided by Operating Activities = $32,700

Correct option is (A)