Crabapples Inc

question 165

Multiple Choice

Crabapples Inc. purchases and sells dry fruit boxes. The following information summarizes its operating activities for 2015: If Crabapples sold 5,000 boxes of dry fruits during the year, what is the cost per box of dry fruits?

• A)$72.28
• B)$32.75
• C)$10.55
• D)$19.75

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Definitions:

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are reported instead of adjustments to net income.

Operating Activities

Business activities directly related to the production and delivery of goods and services, affecting the operating income.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Direct Method

A cash flow statement presentation that lists specific types of cash receipts and payments, used to reveal actual cash flow activities.