Athletes Make More Now, but Prices Are Also Higher Than

question 23

Multiple Choice

Athletes make more now, but prices are also higher than in the past. In 2013 the basketball player Stephen Curry signed a contract for $44 million with the Golden State Warriors. How much is this in 1975 dollars? (The CPI was 53.8 in 1975 and was 233.9 in 2013.)

• A) About $308 million
• B) About $37 million
• C) About $90 million
• D) About $26 million
• E) About $16 million

Understand how to adjust net income to arrive at net cash flow from operating activities.

Identify and differentiate between operating, investing, and financing activities in the statement of cash flows.

Recognize and describe noncash transactions that are omitted from the statement of cash flows and understand where they are disclosed.

Understand the effects of inventory changes on cash flow.

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities they require.

Material Handling

The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.

Activity Cost Pool

A “bucket” in which costs are accumulated that relate to a single activity measure in an activity-based costing system.

Measure Of Activity

A metric used to gauge the level of a specific operation or process over a given time period.