Classlfylng items on the indirect statement of cash flows [10 mln]

destiny corporation is preparing its statement of cash flows by the indirect method. destiny has the following items for
you to consider in preparing the statement:

. increase in accounts payable

. payment of dividends

. decrease in accrued liabilities

. issuance of common stock

. gain on sale of building

. loss on sale of land

. depreciation expense

. increase in inventory

. decrease in accounts receivable

. purchase of equipment

requirement

1. identify each item as am)

0 operating activity—addition to net income (0+), or subtraction from net income (0-)
0 investing activity—addition to cash flow (i+), or subtraction from cash flow (i-)

0 financing activity—addition to cash flow (f+). or subtraction from cash flow (f-)

0 activity that is not used to prepare the indirect cash flow statement (n)

Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above

Because the demand for wheat tends to be inelastic. true or false

Acompany's sales in year 1 were $300,000, year 2 were $351,000, and year 3 were $400,000. using year 2 as a base year, the sales percent for year 3 is