Pinecrest Company Use the Selected Data from Pinecrest Company's Financial Statements to Statements

question 21

Multiple Choice

Pinecrest Company
Use the selected data from Pinecrest Company's financial statements to answer the following question.
-Refer to the data for Pinecrest Company.
Which of the following statements is true?

• A)Net income must be at least $36,000 for 2016.
• B)Net income must be less than $36,000 for 2016.
• C)Cash flows from operating activities is twice as large as net income for 2016.
• D)The amount of net income for 2016 cannot be determined based on the data provided.

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Definitions:

Selling Price

The amount for which a product is sold, excluding any discounts or allowances.

Job T288

A reference to a specific job or project identified by the code T288, which could involve specific tasks, costs, and objectives.

Predetermined Manufacturing Overhead Rate

A rate used to allocate estimated manufacturing overhead to individual jobs based on a predetermined activity, such as labor hours or machine hours.

Job C

A specific task, project, or assignment identified uniquely, usually within a job costing system.