Mead Motors purchases an automobile for its new car inventory from Generous Motors, which finances this transaction through its financial subsidiary, Generous Motors Credit Company (GMCC). Mead pays no funds to Generous Motors or GMCC until it sells the automobile. Mead must then repay the balance of the loan plus interest to GMCC. How should Mead report the acquisition and repayment transactions in its Statement of Cash Flows?

1)Identify the problem

2)List keywords for the major concepts

3)A brief solution to the case that relies on explicitly cited section(s) of the Financial Accounting Standards Board Accounting Codification (Topic ASC XXX-XX...)