The statement of cash flows under the direct method

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Reference no: EM131258701

1. If sales are $500,000, variable costs are $300,000 and fixed costs are $240,000, what is the contribution margin ratio?

A. 40%

B. 48%

C. 52%

D. 60%

2. Which of the following items does not appear in the statement of cash flows under the direct method?

A. Cash payments to suppliers

B. Cash collections from customers

C. Depreciation expense

D. Cash from the sale of equiptment

3. A company would be expected to generate small amounts of cash from operations during the

A. introductory phase

B.growth phase

C. maturity phase

D.decline phase

Reference no: EM131258701

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