The Following Information Relates to the Manufacturing Operations of the JNR

question 235

Multiple Choice

The following information relates to the manufacturing operations of the JNR Printing Company for the year: $$\begin{array} { l r r } & \text { Beginning }&\text { Ending } \\ \text { Raw materials inventory } & \$ 57,000 & \$ 60,000 \\\text { Finithed goods } & 68,000 & 60,000\end{array}$$ The raw materials used in manufacturing during the year totaled $118,000. Raw materials purchased during the year amount to:

• A) $115,000.
• B) $121,000.
• C) $107,000.
• D) $118,000.
• E) $126,000.

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Definitions:

Indirect Method

In finance, it refers to a cash flow statement approach that adjusts net income for the effects of transactions that do not involve cash, to calculate net cash flow from operating activities.

Income Statement

A financial document that provides a summary of a company's revenues, expenses, and profits/losses over a specified period of time.

Net Cash

An accounting term that represents the amount of cash remaining after all operating, investing, and financing activities are accounted for in a given period.

Operating Activity

Transactions and events related to the principal revenue-generating activities of an entity.