Long-term investments can include land held for future expansion.

Which of the following is included in the cash flows from financing activities section of the statement of cash flows?

Orange, Inc. is preparing the company’s statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from financing activities:        Net income $ 182,000 Gain on the sale of equipment   12,300 Proceeds from the sale of equipment   92,300 Depreciation expense—equipment   50,000 Payment of bonds at maturity   100,000 Purchase of land   200,000 Issuance of common stock   300,000 Increase in merchandise inventory   35,400 Decrease in accounts receivable   28,800 Increase in accounts payable   23,700 Payment of cash dividends   32,000

A company that finances a relatively large portion of its assets with liabilities is said to have a high degree of financial leverage.

Experience shows that the default rate on liabilities increases sharply when times interest earned falls below 1.5 to 2.0 and remains at that level or lower for several time periods.

Dividing ending inventory by cost of goods sold and multiplying the result by 365 is the:

Internal operating activities include research and development, distribution, and human resources.

Investing activities involve the buying and selling of assets such as land and equipment that are held for long-term use in the business.

A change in an accounting estimate is:

The time period assumption: