E23-19

Material Price Variance = (AP-SP) x AQ

(1.05-1.10) x 144,000
(-0.05) x 144,000 = -7,200 or $7,200 (F)

Material Efficiency Variance = (AQ-SQ) x SP

SQ = 7 x 144,000 = 1,008,000

(144,000 - 1,008,000) x 1.10
(864,000) x 1.10 = 950,400 (F)

Labor Price Variance = (AP-SP) x AH

AH = 420

(13.50 – 12.50) x 420
(1.00) x 420 = $420 (U)

Efficiency Variance = (AH-SH) x SP

SH = 0.025 x 20,000 = 500

(420 – 500) x 12.50
(-80) x 12.50 = -1,000 or 1, 000
E14-17

Minerals Plus, INC.
Cash Flow Statement
Year Ending September 30, 2012

Cash flows from operating activities: Net income $51,000 Adjustments to reconcile net income to net cash Provided by operating activities; Decrease in account receivable $18,000 Increase in inventory ($4,000) Increase in account payable $13,000 Decrease in accrued liabilities ($13,000) $14,000 Net cash provided by operations act. $37,000

Cash flows from investing activities: Acquisition of long-term (plant) assets ($100,000) Cash receipt from sale of land $28,000 Net cash used from investing act. $72,000

Cash flows from financing activities: Payable of notes payable ($18,000) Payment of dividends ($8,000) Net cash provided by financing act. ($26,000)

Net increases (decreases) in cash during the year $83,000 Cash at September 30, 2011 $8,000 Cash at September 30, 2012 $91,000

Noncash investing and financing activities:

Issuance of common stock $29,000 Total noncash investing and financing activities