1) Explain the use of a spreadsheet in the preparation of the statement of cash flows.
2) Thomas Co. provides the following fixed budget data for the year:
Required: Prepare a flexible budget performance report for the year using the
contribution margin format.
3) A company had the following transactions during October:
Using the net method of recording purchases, prepare the journal entries to record these
October transactions.
4) Explain what is meant by the “lean business model” and why many businesses have
adopted it.
5) What is capital budgeting? Why are capital budgeting decisions often difficult and
risky?