The Following Information Is Available for Cooke Corporation What Is the Net Increase in Cash and Equivalents?
A)

question 111

Multiple Choice

The following information is available for Cooke Corporation: $$\begin{array} { | l | c | } \hline & \text { (in million) } \\\hline \text { Cash receipts from operating activities } & \$ 980 \\\hline \text { Cash payments from operating activities } & \$ 240 \\\hline \text { Net cash used by investing } & \$ 210 \\\hline \text { Net cash provided by financing } & \$ 750 \\\hline \text { Net increase in cash and equivalents } & ? \\\hline \text { Cash and equivalents at start of year } & \$ 550 \\\hline \text { Cash and equivalents at year-end } & ? \\\hline\end{array}$$ What is the net increase in cash and equivalents?

• A) $1,700
• B) $1,280
• C) $730
• D) $2,250

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Definitions:

Overhead Costs

Expenses related to the operation of a business that cannot be directly attributed to a specific product or service, such as rent, utilities, and administration expenses.

Activity Rate

The predetermined overhead rate used in activity-based costing to allocate costs to products or services based on specific activities.

Activity-based Costing

A costing method that assigns costs to products or services based on the activities they require.

First-stage Allocation

The initial process of assigning overhead costs to different departments or cost centers in a business based on relevant criteria.