Operating Cash Flows (Direct Method) Calculate the cash flow in each of the following cases: a. Cash paid for advertising: Advertising expense $62,000 Prepaid advertising, January 1 13,000 Prepaid advertising, December 31 15,000 Cash Flow Answer b. Cash paid for income taxes: Income tax expense $31,000 Income tax payable, January 1 7,100 Income tax payable, December 31 5,900 Cash Flow Answer c. Cash paid for merchandise purchased: Cost of goods sold $180,000 Inventory, January 1 30,000 Inventory, December 31 24,000 Accounts payable, January 1 10,000 Accounts payable, December 31 11,000 Cash Flow Answer

Arguments made against free trade include all of the following exceptdumping is an unfair trade practice that puts domestic producers of substitute goods at a disadvantage that they should be protected against. national defense considerations justify producing certain goods domestically whether the country has a comparative advantage in their production or not. free trade is inflationary and should be restricted in the domestic interest. if foreign governments subsidize their exports, foreign firms that export are given an unfair advantage that domestic producers should be protected against. infant industries should be protected from free trade so that they may have time to develop and compete on an even basis with older, more established foreign industries.