1. In accounting, we usually use historical cost (i.e. original price) on the balance sheet. However, for some debt/equity investments, we adjust to fair market value. Explain to me why some debt/equity investments get adjusted to fair market value while other investments do not.

2. Your Statement of Cash Flows shows a negative cash flow from investing activities (primarily from a significant investment in equipment this year) and a positive cash flow from financing activities (primarily due to both issuing new common stock and taking out a note payable to fund your equipment purchase). Your CEO has asked you to give one potential positive and one potential negative explanation for the investing and financing cash flows. You should have 4 statements total (Investing - 1 positive explanation, 1 negative explanation; Financing - 1 positive, 1 negative). E.g. "The negative cash flow from investing could be a positive thing because the equipment we bought has a Buffalo Bills logo, which will bring in more customers!"