1.2.

Using the 10-K for Facebook that was filed with the SEC on 2017-02-03, find its Statement of Cash Flows. Facebooks ticker symbol is "FB" and its CIK number is 0001326801.

1. For the year ended Dec 31, 2016 what is the largest positive line item under cash flow from operating activities?
2. Why is that line item reported on the cash flow statement, even though it clearly does not result from a cash transaction?
3. What stage of the company life cycle is Facebook in at the end of 2016? What is your evidence?

3. Killian Corporation had several transactions during the year that impacted long-term assets, long-term liabilities, and stockholders' equity. Determine if the cash amount in each of the following transactions is shown as an investing activity, as a financing activity, or as neither. Investing Activity Financing Activity Neither Sold Common Stock Signed a Note Payable for Cash Purchased Equipment by Signing a Note Payable Sold Land Redeemed Bonds Payable Declared Dividends to Be Paid Next Year Purchased an Investment in Knox Company 14. Ruthers Corporation began business on January 1, 20X5. The financial statements for Ruthers's first year are given here. Because 20X5 is the first year in business, the balance sheet accounts have no beginning balances. Ruthers Corporation Income Statement as of 12/31/X5 Revenue 14,900 Cost of Goods 6,780 Gross Profit 8,120 3,910 Other Expenses Earnings before Tax 4,210 Tax on Income 1,263 Net Income $ $ 2,947 Ruthers Corporation Balance Sheet as of 12/31/X5 Assets Liabilities Cash $ 900 Accounts Payable $ 1,830 Accounts Receivable 1,990 Salaries Payable 700 Inventory 2,510 Note Payable 10,000 Prepaid Expenses 577 Total Liabilities 12,530 Land 14,000 4,500 Owners' Equity Common Stock Retained Earnings Total Owners' Equity 2,947 7,447 Total Assets 19,977 Total Liabilities & Owners' Equity $ $ 19,977 Additional Information: a. Ruthers purchased land for $14,000 cash. b. Common stock was issued for $4,500 in cash. c. A note payable was signed for $10,000 cash. Prepare Ruthers's statement of cash flows for 20X5 using the indirect method of calculating cash flows from operating activities