Exhibit 10 During 2004 Klandy Corp

question 35

Multiple Choice

Exhibit 10.6
Use the Information Below for the Following Problem(S)
You are provided with the following information for the Klandy Corporation.
$\begin{array}{lccc} &\ 2003 & 2004 \\ \text { Net Income } & \$ 1200 & \$ 1500 \\\text { Depreciation } & \$ 200 & \$ 300 \\\text { Total Current Assets } & \$ 700 & \$ 900 \\\hline\end{array}$
During 2004 Klandy Corp. made capital expenditures totaling $500 and disposed property worth $400.
-Refer to Exhibit 10.6.The firm's cash flow from operating activities for the year 2004 is

• A) $2100
• B) $1900
• C) $1800
• D) $1700
• E) $1600

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion to the activity or production level, such as raw materials, labor costs, and energy usage, in contrast to fixed costs which remain constant regardless of output.

Variable Costs

Costs that vary directly with the level of output or production volume, such as raw materials and labor expenses.

Total Revenue

The total income generated by a company from its sales of goods or services before any costs or expenses are deducted.