Use the Following Information for Questions

question 8

Multiple Choice

Use the following information for questions.
Harlan Mining Co.has recently decided to go public and has hired you as an independent CPA.One statement that the enterprise is anxious to have prepared is a statement of cash flows.Financial statements of Harlan Mining Co.for 2011 and 2010 are provided below.
The following additional data were provided:

-Under the direct method, the cash received from customers is

• A)$4,272,000.
• B)$4,128,000.
• C)$4,200,000.
• D)$4,220,000.

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Definitions:

Marginal Rate

Generally refers to the additional or incremental rate applied to an additional unit of some activity, such as the rate of tax applied to the next dollar of income.

Budget Constraint

Represents the limitations on the choices consumers can make, given their income and the prices of goods and services.

Indifference Curve

A curve that shows consumption bundles that give the consumer the same level of satisfaction

Absolute Price

The price of a good or service without taking inflation or purchasing power into account.