5. Suppose you are computing inventory with the average cost method. Cost of Goods Sold Expense was $212,500.00 and 2,500 units were sold there were 475 units in Ending Inventory and 250 units in Beginning Inventory. What is the dollar amount of Goods Available for Sale? a b. c. d. $252,875 $233,750 $238.000 $231,625 6. The cost of a delivery truck is $150,000. The estimated salvage value is $15,000. The estimated useful life is 4 years. The truck is expected to be used for these miles (units): Year 1, 40,000: Year 2,30,000; Year 3, 20,000; and Year 4, 10,000. What is the depreciation expense for Year 3, under the units of production method? a. b. c. a. $20,000 b. $30,000 c. $40,500 d. $27,000 7. On the Statement of Cash Flows, depreciation expense is added in the operating section. This is because: The company has received cash from selling property, plant and equipment Depreciation expense is more appropriate to put in the investing section. Depreciation expense is a non-cash item. d. Depreciation expense cannot be recognized due to conservatism. 8. A typical stock split will number of shares and par value per share and market price per share. a. increase, decrease, decrease b. decrease, decrease, increase c. increase, increase, decrease d. decrease, decrease, decrease 9. Consider the operating section in a statement of Cash Flows. Which statement is most true about the operating section? The operating section: a. takes net income from the income statement and adjusts for various non-cash items and accruals to get to a cash basis statement of operations b. takes net income from the income statement and adjusts for changes in investing and financing activities to get to a cash basis statement of operations c. takes a cash basis statement of operations and connects it to various changes in current operating accounts from the balance sheet d. takes a cash basis statement of operations and adjusts for various non-cash items to give a more accurate portrayal of cash flow from operations