Hirshberg Corporation's Comparative Balance Sheet Appears Below

question 124

Multiple Choice

Hirshberg Corporation's comparative balance sheet appears below:

The company's net income (loss) for the year was $11,000 and its cash dividends were $4,000. It did not sell or retire any property, plant, and equipment during the year.

-The company's net cash provided by operating activities is:

• A)$48,000
• B)$18,000
• C)$40,000
• D)$52,000

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Definitions:

Contribution Margin Ratio

A financial metric that measures a product's profitability by calculating the difference between its sales and variable costs as a percentage of total sales.

Fixed Costs

Expenses that do not change with the level of production or sales over a certain range and time period.

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales volume.

Variable Costs

Costs that change in proportion to the level of production or activity, such as materials and labor.