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1. Direct materials inventories are kept in pounds for Make or Break, Inc. For the current year, total pounds required for production is 10,800 pounds of materials. If the beginning inventory is 1,500 pounds and the ending inventory is 3,000 pounds, total materials required to be purchased is:
   1. 9,500 pounds
   2. 9,700 pounds
   3. 12,300 pounds
   4. 8,800 pounds

2. Expected direct materials purchases for Micks Sporting Goods are $85,000 in the first quarter and $115,000 in the second quarter. Micks policy is to pay 45% of the purchases in cash as incurred, and the balance paid in the following quarter. The budgeted cash payments for purchases in the second quarter are: a. $98,500
   2. $46,750
   3. $51,750
   4. $115,000
3. When preparing a statement of cash flows, it is essential to analyze the balance sheet, particularly changes in the beginning and ending balances of accounts. The ABC Company presents the following selected portion in its balance sheet at 12/31/19:

4. 	12/31/2019	12/31/2018
   Accounts Receivable	100,000	150,000
   Accounts Payable	85,000	90,000

   Assuming these are the only changes in the comparative balance sheets,

5. 1. Net cash flow from operating activities had a net decrease $45,000
   2. Net cash flow from operating activities had a net increase of $45,000
   3. Net cash flow from operating activities had a net decrease of $185,000
   4. There is no effect to net cash flow.

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