Oswald Ltd

question 29

Multiple Choice

Oswald Ltd. has recently decided to go public and has hired you as their independent accountant. They wish to adhere to IFRS and know that they must prepare a statement of cash flows. Their financial statements for 2020 and 2019 are provided below: The following additional data were provided for calendar 2020:
1) Dividends declared and paid were $ 24,000.
2) Equipment was sold for $ 30,000. This equipment originally cost $ 44,000, and had a book value of $ 36,000 at the time of sale. The loss on sale was included in "selling and administrative expenses," as was the depreciation expense for the year.
3) Bonds were retired during the year at par.
For a statement of cash flows for calendar 2020, using the indirect method, the cash provided by operating activities is

• A) $ 51,000.
• B) $ 36,000.
• C) $ 30,000.
• D) $ 25,000.

Determine monthly payments under a balance billing plan for utility bills.

Interpret data from a pie chart to allocate a budget across various categories.

Understand the diverse strategies for entering and competing in international markets.

Recognize the importance of cultural awareness in international business operations.

---

Definitions:

Actual Manufacturing

The real and factual process of producing goods, as opposed to planned or estimated production.

Job-Order Costing

An accounting method used to track costs and revenue for individual jobs or batches, suitable for customized orders.

Raw Materials

Basic materials that are used in the production process of manufacturing goods.

Production

The process of creating goods and services, involving tasks such as assembly, fabrication, and conversion of materials and resources.