Carpet World Inc

question 71

Multiple Choice

Carpet World Inc. reported the following information for 2015 and 2016. If Carpet World uses the indirect method to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2016?

• A) $64,000
• B) $66,000
• C) $68,000
• D) $70,000

---

Definitions:

Budgeted Units

The quantity of products or services that a company plans to sell or produce within a specific period, as outlined in its budget.

Actual Costs

The real costs incurred in the production of goods or services, including all expenses direct and indirect.

Materials Price Variance

The difference between the actual cost of materials and the expected cost, multiplied by the amount of materials purchased.

Standard Price

A predetermined cost that companies use to value inventory and cost of goods sold, often used in budgeting and performance evaluation.