please help with question #2. thanks. please see attachments.

O PERJU LITE period 2. What does the "Investment in intangible assets" item represent? 3. What does the "Principal payments on long-term debt" item represent? Principle payment of long term debts appearing under the head cash flow fron This amount refers to the portion of principal repayment out of the total paye gadu reservation system Franchise agreement acquisition cost amortization Loss (gain on disposal of assets Provision for bad debts, net Non-cash stock compensation and other charges Non-cash interest and other income) loss Deferred income taxes Equity in net losses from unconsolidated joint ventures, less distributions received Franchise agreement acquisition cost, net of reimbursements Change in working capital and other net of acquisition Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Investment in property and equipment Investment in intangible assets Proceeds from sales of assets Business acquisition, net of cash acquired Contributions to equity method investments Distributions from equity method investments Purchases of investments, employee benefit plans Proceeds from sales of investments, employee benefit plans Issuance of mezzanine and other notes receivable Collections of mezzanine and other notes receivable Other items.net Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES: et borrowings pursuant to seasing credit facilities Type here to search Six Months Ended June 30, 2018 2017 104,925 $ 74,954 3,385 10.157 3,305 1,707 6,722 10,048 4,375 (82) 4,356 7,716 808 3,828 6,702 (20.326) (65,258) 63,814 8,082 (274) (732) 3,543 (14,108) (25,915) 64.108 (21.611) (1.329 (10.687) 2.228 3,052 (231,317) (7,206) 1,210 (2.047) 1,828 (42.127) 1,696 (1.736) 2,094 U S O L Accounting Policies No Teuly 1, 2018. See Note 16 for additional information ompany's significant accounting policies are detailed in Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2017. The significant accoun tly Adopted Accounting Standards y 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU) 2014-09. Revenue From Contracts with Customers (Topic 606) and issued subsequent amendments 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12, and ASU 2016-20 (these ASUS collectively referred to as "Topic 606"). The Company adopted Topic 606 as of January 1, 2018 using the full retrospectiv any's revenue recognition as follows: Initial and relicensing fees earned upon execution of a franchise agreement are recognized as revenue ratably as services are provided over the enforceable period of the franchise license arrangement. This red typically recognized revenue for initial and relicensing fees in full in the period of agreement execution Sales commissions, which are paid upon the execution of a franchise agreement, are recognized ratably over the period a hotel is expected to remain in the Company's franchise system rather than expensada Franchise agreement acquisition costs are capitalized as intangible assets, as opposed to notes receivable Amortization of franchise agreement acquisition costs are recognized as a reduction of revenue rather Revenue related to the Choice Privileges program which is reported as a component of marketing and reservation system fees, is deferred as points are awarded and recognized upon point redemption net ofre was recognized on a gross basis at the time the points were issued with a of Contents corresponding deferral of revenue equal to the expected future costs of the award Deferred revenue was then recognized as actual points were redeemed and costs for those redemptions incurred Topic 606 also impacted the Company's accounting for surpluses and deficits generated from marketing and reservation system activities. The Company has historically consistent with its existing agreements reservation activities, and as a result, the Company recorded excess marketing and reservation system revenues or expenses as assets or liabilities on the Company's balance sheet prior to the adoption of Topic Company will no longer defer revenues and expenses or record assets and liabilities when system revenues exceed expenses in the current period or vice versa. The Company intends to manage these activities to may be generated quarterly due to the seasonal nature of the hotel industry and annually based on the level of investments needed for new initiatives that benefit our franchisees mounts and disclosures set forth in this Form 10-0 reflect the necessary adjustments required for the adoption of Topic 606, including the reclassification of prior Vear balances to conform to cuenta Type here to search Inc. and Shares Statement of Cashows Guaranter Subsidiaries Neo-Garter Subdiaries 12,745 Consolidated 64,108 (657) S 9541 (223) OM INVESTING ACTIVITIES: 19.120) (1,499 (1.34+) (729) (42.090) (10,687) (2,228) (42,127) 1,696 (14,977) 16.05 (9.533) (5 414) 552 (1716 2094 (1,736) 2,094 lev ement employee benefit plans (1707) 1 TOT 110 ) (1.223 (67 ROMINANCING ACTIVITIES: (309) 23,200 (309) (7,414) 6.590 (484) (1 797) 1.58 (2.189) 2.156 (24,133) 2166) (5.461) 19 - 7:46 AM 11/3/2019