Birchett Corporation's Most Recent Balance Sheet Appears Below

question 71

Multiple Choice

Birchett Corporation's most recent balance sheet appears below:
The company's net income for the year was $91 and it did not sell or retire any property,plant,and equipment during the year.Cash dividends were $22.The net cash provided by (used in) operating activities for the year was:

• A) $86
• B) $5
• C) $96
• D) $130

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Definitions:

Favorable Volume Variance

A metric that indicates a company has produced or sold more than initially anticipated, leading to increased profitability.

Contribution Margin

The difference between the sales revenue of a company and its variable costs.

Fixed Budget

A budget that remains unchanged and is based on a fixed level of activity, regardless of actual levels of output, sales, or revenue throughout the budget period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more accurate financial planning and analysis.