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13. Which of the following budgets are prepared before the sales budget? Pro Forma Balance Sheet Cash Budget Yes Yes No No Yes C. Yes 14. Gary Corporation prepares its statement of cash flows using the indirect method. Which of the following would be subtracted from net income in the operating activities section of the statement? Increase in Bonds Payable Increase in Income Taxes Payable es es Yes B) C) D) Yes No 15. From a standpoint of cost control, the most effective time to recognize materials quantity variances is when the materials are placed into production. A. True B. False 16. In deciding whether to manufacture a part or buy it from an outside supplier, which of the Freight charges paid by the purchasing it the part is bought from an outside supplier company if the part is bought from an following costs are relevant? Fixed overhead that will continue even outside supplier