1 -

Loster Company reported a net loss of $17,171 for the year ended December 31, 2010. During the year, accounts receivable decreased by $4,273, merchandise inventory increased by $8,434, accounts payable increased by $15,867, and depreciation expense of $4,544 was recorded. What was the net cash used for or provided by operating activities during the year 2010?

Select the correct answer.

used net cash of $-921.

used net cash of $17,171.

provided net cash of $-921.

provided net cash of $17,171.

2 -

On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include

a. Receipts from the issuance of capital stock.

b. Receipts from the sale of investments.

c. Payments for cash dividends.

d. Amortization of premium on bonds payable.

3 -

If sales are $885,671, variable costs are $437,121, and operating income is $222,910, what is the contribution margin ratio?

Select the correct answer.

51%

25%

75%

49%