Arundel company disclosed the following information for its recent calendar year. income statement data selected year-end balance sheet data revenues $ 100,000 accounts receivable decrease $ 24,000 expenses purchased a machine for cash 10,000 salaries expense 84,000 salaries payable increase 18,000 utilities expense 14,000 other accrued liabilities decrease 8,000 depreciation expense 14,600 other expenses 3,400 net loss $ (16,000 ) required: 1. prepare the operating activities section of the statement of cash flows using the indirect method. (any loss or amounts to be deducted should be indicated with a minus sign.)

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.