The accounting records of eastlake industries provided the data below.

net income $308,000
depreciation expense 19,000
increase in inventory 2,400
increase in accounts receivable 1,480
decrease in interest payable 1,680
amortization of bond premium 3,800
increase in accounts payable 7,800
cash dividends paid 28,000
required: prepare a reconciliation of net income to net cash flows from operating activities.

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan