20 p:53:04 COTB MC Qu. 4-22 (Static) Assume the following information: Assume the following information: Percent Complete Milling Department Units Materials Conversion Beginning work in process inventory 300 45 % 30 % Units started into production during March 6,000 Units completed during March and transferred to the next department ? 100 % 100 % Ending work in process inventory 500 60 % 40 % If the equivalent units of production for conversion is 6,000 using the weighted-average method, then how many units were completed during March and transferred to the next department?

21

Which of the following statements is true when computing the net cash provided by (used in) operating activities using the indirect method?

Multiple Choice

• If the accounts payable balance increases during the period, the amount of the increase is subtracted from net income.

• If the accounts payable balance increases during the period, the amount of the increase is added to net income.

• If the property, plant, and equipment balance increases during the period, the amount of the increase is added to net income.

• If the property, plant, and equipment balance increases during the period, the amount of the increase is subtracted from net income.

• 22

• Assume a merchandising company had credit sales of $380,000, cost of goods sold of $200,000, and net income of $60,000. It provided the following excerpts from its balance sheet:

  	This Year				Last Year
  Current assets:
  Accounts receivable	$	40,000			$	46,000
  Inventory	$	53,000			$	50,000
  Prepaid expenses	$	13,000			$	11,000
  Current liabilities:
  Accounts payable	$	44,000			$	44,000
  Income taxes payable	$	13,000			$	10,000

  If the credits to the companys accumulated depreciation account were $21,000, then based solely on the information provided, the companys cash paid for inventory purchases would be:

  Garrison 17e Rechecks 2020-10-02

  Multiple Choice

• $191,000.

• $209,000.

• $203,000.

• $197,000.