Table 24-10 The Table Below Shows the Prices of Baseballs and Baseball

question 502

Multiple Choice

Table 24-10
The table below shows the prices of baseballs and baseball bats for three years. Assume the typical consumer's basket consists of 6 baseballs and 2 baseball bats.
-Refer to Table 24-10. If 2008 is the base year, then the consumer price index was

• A)100.00 in 2008, 110.03 in 2009, and 117.43 in 2010.
• B)100.00 in 2008, 110.03 in 2009, and 129.20 in 2010.
• C)100.00 in 2008, 117.00 in 2009, and 132.50 in 2010.
• D)169.50 in 2008, 186.50 in 2009, and 219.00 in 2010.

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Definitions:

Indirect Method

A technique for preparing cash flow statements where net income is adjusted for changes in balance sheet accounts to reflect cash inflows and outflows.

Financing Activity

Transactions involving changes in equity and long-term liabilities reflecting how a company raises and repays capital.

Consolidated Statement of Cash Flows

A financial statement that presents the total cash inflows and outflows of a parent company and its subsidiaries.

Non-Voting

Shares in a company that do not grant the shareholder the right to vote on corporate matters.