Margo operates a small chain of grocery stores in the Southwest. Each month, she buys over 8,000 packages of tortilla shells from a local food manufacturer and sells them to customers of the store
Which of the following tracks Margo's cost to purchase the tortillas?
A) wholesalers price index (WPI)
B) consumer price index (CPI)
C) market basket index (MBI)
D) perishable market index (PMI)
E) producer price index (PPI)
Answer: E
Explanation: E) PPI measures prices at the wholesale level—wholesale goods purchased in large quantities for resale.
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Fill in the blank(s) with the appropriate word(s).
To Go Company is preparing its statement of cash flows using the indirect method. During the year, they purchased equipment for $15,000 cash. Which of the following statements is true?
A) $15,000 would be shown as a negative cash flow in the operating activities section. B) $15,000 would be shown as a negative cash flow in the investing activities section. C) $15,000 would be shown as a positive cash flow in the investing activities section. D) $15,000 would be shown as a positive cash flow in the financing activities section.