Answer:
Ayayai Corporation
Statement of Cash Flows
For the Year Ended December 31, 202x
Cash flows from operating activities:
Net income $50,700
Adjustments to reconcile net income:
- Depreciation expense $17,900
- Increase in accounts payable $13,600
- Increase in accounts receivable ($12,000)
- Increase in AFS securities ($17,100)
- <u>Increase in inventory ($7,200) ($4,800)</u>
Net cash flow provided by operating activities $45,900
Notes payable are part of the financing activities of the company, they are not part of the operating activities. So any change in the value of notes payable must be included in the cash flows from financing activities.
This is a flighting schedule method, which is where the normal ad schedule is targeted in a specific period of time and no ads are run the rest of the year (known as the cessation period).
Answer:
a. Due to increases in hay prices, an input for raising cattle, the price of a gallon of 2% milk increases from $2.98 to $3.25. QUANTITY DEMANDED DECREASES, as the price of a good or service increases, the quantity demanded decreases.
b. Groupon has a Groupon for $6 off the price of laser tag. QUANTITY DEMANDED INCREASES, as the price of a good or service decreases, the quantity demanded increases.
c. Sharp increase in the price of wood causes increases in prices for dressers and desks. QUANTITY DEMANDED DECREASES, if the price of a key input increases, the production costs will increase, resulting in a higher selling price ⇒ lower quantity demanded.
d. Week long special at the grocery store, where pork shoulder is on sale at $1.99 a pound, down from $3.99 a pound. QUANTITY DEMANDED INCREASES, as the price of a good or service decreases, the quantity demanded increases.
e. Buy one get one free special for MP3 albums on Amazon. QUANTITY DEMANDED INCREASES, the buy one get one free promotion lowers the price of a good or service, resulting in higher quantity demanded.
A bilateral is a formal agreement between two or more governments!
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