12-7 Reporting Cash Flows from Operating Activities (Indirect Method) LO12-2 The following information pertains to Peak Heights Company: Income Statement for Current Year Sales $ 86,700 Expenses Cost of goods sold $ 51,775 Depreciation expense 7,400 Salaries expense 11,900 71,075 Net income $ 15,625 Partial Balance Sheet Current year Prior year Accounts receivable $ 11,000 $ 13,800 Inventory 13,000 9,800 Salaries payable 1,710 860 Required: Present the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method.

mary's baskets company expects to manufacture and sell 30,000 baskets in 2019 for $5 each. there are 4,000 baskets in beginning finished goods inventory with target ending inventory of 4,000 baskets. the company keeps no work-in-process inventory. what amount of sales revenue will be reported on the 2019 budgeted income statement?

Jamie is saving for a trip to europe. she has an existing savings account that earns 3 percent annual interest and has a current balance of $4,200. jamie doesn’t want to use her current savings for vacation, so she decides to borrow the $1,600 she needs for travel expenses. she will repay the loan in exactly one year. the annual interest rate is 6 percent. a. if jamie were to withdraw the $1,600 from her savings account to finance the trip, how much interest would she forgo? .b. if jamie borrows the $1,600 how much will she pay in interest? c. how much does the trip cost her if she borrows rather than dip into her savings?

Draw, label and explain the circular flow model (cfm). include the following: firms, households, product market, and factor (or resource) market.who owns the productive resources? what are those resources? what payment does each type of resource earn? explain the two markets in the cfm and explain the roles that firms and household each play in the cfm.