Portions of the financial statements for a company are provided below. income statement for the year ended december 31, year 2 net sales $ 1,600,000 expenses: cost of goods sold $ 970,000 operating expenses 480,000 depreciation expense 42,000 income tax expense 32,000 total expenses 1,524,000 net income $ 76,000 selected balance sheet data december 31 year 2 year 1 increase (i) or decrease (d) cash $ 94,000 $ 81,000 $ 13,000 (i) accounts receivable 46,800 53,000 6,200 (d) inventory 67,000 51,000 16,000 (i) prepaid rent 2,200 3,400 1,200 (d) accounts payable 37,000 33,000 4,000 (i) income tax payable 4,200 6,000 1,800 (d) required: prepare the operating activities section of the statement of cash flows for the company using the indirect method.

Wren pork company uses the value basis of allocating joint costs in its production of pork products. relevant information for the current period follows: product pounds price/lb. loin chops 3,000 $ 5.00 ground 10,000 2.00 ribs 4,000 4.75 bacon 6,000 3.50 the total joint cost for the current period was $43,000. how much of this cost should wren pork allocate to loin chops?

The lee family is looking to buy a house in one of two suburban areas just outside of a major city, and air quality is a top priority for them. overall air quality is calculated by taking measures in 100 locations within each suburb and then calculating a measure of central tendency. in one suburb, there is a major bus station that creates very poor air quality at its location but has no impact in the surrounding parts of the suburb. in this situation, which measure of overall suburb air quality would be most useful?

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?