(Appendix 14A) the Change in Each of Kendall Corporation's Balance

question 5

Multiple Choice

(Appendix 14A) The change in each of Kendall Corporation's balance sheet accounts last year follows:
Kendall Corporation's income statement for the year was:
There were no sales or retirements of property, plant, and equipment and no dividends paid during the year. The company pays no income taxes and it did not purchase any long-term investments, issue any bonds payable, or repurchase any of its own common stock. The net cash provided by (used in) operating activities on the statement of cash flows is determined using the direct method.
-The selling and administrative expense adjusted to a cash basis would be:

• A) $120,000
• B) $106,000
• C) $110,000
• D) $112,000

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Definitions:

Wholesale Price

The price that manufacturers charge the retailer.

Trademark

A recognizable sign, design, or expression which distinguishes products or services of a particular trader from those of others.

Invention

The creation of a new device, method, or process, resulting from study and experimentation.

Expense Function

A mathematical function that describes the cost associated with a particular level of production or activity.