Prepare statement of cash flows using the indirect method for Libby Inc. for the year 2016.
Libby Inc.
Income statement
For the year ended on December 31, 2016
Sales $100,000
Cost of Goods Sold $61,000
Depreciation 5,000
Loss on Sale of land 1,000
Supplies Expense 8,000
Salaries Expense 10,000
Income Tax Expense 3,000
Total Expense $88,000
Net income $12,000
Libby Inc.
Balance Sheet
December 31
2016 2015
Asset
Cash $44,000 $18,000
Accounts Receivable 27,000 29,000
Inventory 30,000 36,000
Land 50,000 65,000
Equipment 60,000 37,000
Less Accumulated Depreciation (35,000) (30,000)
Total Assets $176,000 $155,000
Accounts Payable $25,000 $22,000
Salaries Payable 800 1,000
Notes Payable, Long Term 38,000 48,000
Common Stock 80,000 60,000
Retained Earnings 32,200 24,000
Total Liab. and Stockholder Eq. $176,000 $155,000
Additional Information
1. Bought equipment for cash, $23,000.
2. Sold Land costing $15,000 only for $14,000 with loss on sale of land $1,000
3. Paid $10,000 on long term note payable.
4. Issue new shares of common stock for $20,000.
5. Declared and paid a $3,800 dividend in cash

this is all on your opinion. you choose what you want to do.

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.