Can someone please help me check my work on the following problems?

1. At the end of the next four years, a new machine is expected to generate net cash flows of $8,000, $12,000, $10,000, and $15,000, respectively. What are the cash flows worth today if a 3% interest rate properly reflects the time value of money in this situation? 2. Your Aunt makes you the following offer: $15,000 upon graduation in one year or $18,000 upon attaining your CPA license in 3 years. Which offer should you take if current rates are 14% (Hint: take the one with the highest present value!) 3. Carlos has $255,906 accumulated in a 401K plan. The fund is earning a low, but safe, 3% a year. The withdrawals will take place at the end of each year starting a year from now. How soon will the fund be exhausted if Carlos withdraws $30,000 each year? 4. How much must be invested now at 9% interest to accumulate to $10,000 in five years? 5. Meisenhelder Corporation will deposit $5,000 into a money market sinking fund at the end of each year for the next five years. How much will accumulate by the end of the fifth and final payment if the sinking fund earns 9% interest? 1 6. An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interest is five percent, what is the current market value of the bond? 2 7. The FASB's stated preference for reporting operating cash flows is the _____________. 8. Zheng Inc. had salaries payable of $60,000 and $90,000 at the end of 2015 and 2016, respectively. During 2016, Zheng recorded $620,000 in salaries expense in its income statement. Cash outflows for salaries in 2016 were: 9. Michelle Co. reported net income of $45,000 for the year ended December 31, 2016. January 1 balances in accounts receivable and accounts payable were $23,000 and $26,000 respectively. Year-end balances in these accounts were $22,000 and $28,000, respectively. Assuming that all relevant information has been presented, Michelle Co's cash flows from operating activities would be: 3 10. Sean Shoe Co. reported net income of $216,000 for its year ended December 31, 2016. Purchases totaled $152,000. Accounts payable balances at the beginning and end of the year were $36,000 and $33,000, respectively. Beginning and ending inventory balances were $44,000 and $46,000, respectively. Assuming that all relevant information has been presented, Sean Shoe Co would report operating cash flows of: Extra Credit - 11. Cash flows from investing do not include cash flows from: A. Lending money to another corporation. B. The sale of equipment. C. Borrowing. D. The purchase of other corporation's securities. 4 Problems / Essay Questions 1. The following information is for Hutton, Inc. for the year ended December 31, 2016. Hutton Inc had a cash and cash equivalents balance of $5,200 on January 1, 2016, and $2,320 on December 31, 2016. (15 points) Required: Prepare a statement of cash flows for the year using the direct method for operating activities. 5 2. Briefly describe the differences between an ordinary annuity, an annuity due, and a deferred annuity. (5 points) 3. Provide two subjects/topics/business issues where we use present value techniques in accounting, and provide examples of the accounting application. (5 points) 4. Two banks each have annual CD rates of four percent. Bank A compounds quarterly and Bank B compounds semiannually. Explain which bank offers the better CD. (5 points) 6 5, 6, & 7. Lee's Restaurants Cash Flow (in millions) 5. Lee would report net cash inflows (outflows) from operating activities in the amount of: (8 points) 6. Lee would report net cash inflows (outflows) from investing activities in the amount of: (5 points) 7. Lee would report net cash inflows (outflows) from financing activities in the amount of: (7 points) 7