question 67
Multiple Choice
Comparative financial statements for Bent Stew Enterprises are shown below: Assets Current assets: Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment, net Intangible assets, net Total assets Liabilities and Stockholders’ Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term debt Total liabilities Stockholders’ equity: Common stock Additional paid-in capital Retained earnings Total stockholders’ equity Total liabilities and stockholders’ equity Sales Cost of goods sold Gross margin Operating expenses Operating income Interest expense Earnings before income taxes Income taxes Net earnings December 312018$3,0008,50012,0001,40024,900103,60064,000$192,500$11,00011,80022,800120,000142,80015,00020,00014,70049,700$192,500 Year Ended December 312018$250,000164,00086,00064,00022,0007,50014,5007,800$6,7002017$8006,0008,20090015,900123,30047,000$186,200$12,0003,20015,200128,000143,20015,00020,0008,00043,000$186,2002017$230,000142,30087,70054,00033,7005,90027,8007,140$20,680 Using horizontal analysis, how much is the percentage change in cash for Bent Stew Enterprises from 2017 to 2018?
Definitions:
Materials Quantity Variance
The difference between the actual quantity of materials used in production and the expected amount, which can indicate efficiency or waste.
Standard Price
The predetermined cost assigned to materials, labor, and overhead, used in budgeting and variance analysis.
Labor Variances
Differences between the actual labor costs incurred during production and the standard or expected labor costs, which can indicate efficiencies or inefficiencies.
Direct Labor Data
Information regarding the labor costs directly associated with the production of goods or services, used for calculating product cost and efficiency.