Q1: Companies often try to keep accounting earnings growing at a relatively steady pace, thereby avoiding large swings in earnings from period to period. They also try to meet earnings targets. To do so, they use a variety of tactics. The simplest way is to control the timing of accounting revenues and costs, which all firms can do to at least some extent. For example, if earnings are looking too low this quarter, then some accounting costs can be deferred unit next quarter. This practice is called earnings management. It is common and it raises a lot of questions. Why do firms do it? Why are firms even allowed to do it under GAAP? Is it ethical? What are the implications for cash and shareholder wealth? Q2: Volbeat Corp. shows the following information on its 2015 income statement: sales=$267,000, costs=$148,000; other expenses=$8,200; depreciation expense=$17,600; interest expense=$12,400; taxes=$32,620; dividends=$15,500. In addition, you're told that the firm issued $6,400 in new equity during 2015 and redeemed $4,900 in outstanding long-term debt. A. what is the 2015 operating cash flow? B. What is the 2015 cash flow to creditors? C. What is the 2015 cash flow to stockholders? D. If net fixed assets increased by $25,000 during the year, what was the addition to NWC