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Question - Forrest Gardner, owner of Gardner's Gardens, just completed his first year in business and has received financial statements that have been prepared by his accountant. Gardner finds the income statement and balance sheet to be informative, however, he does not understand the statement of cash flows. He says that the first section is especially confusing and does not understand why the income statement can't be used to get an understanding of cash flows from operating activities.
Summary explaining the following:
1. Purpose and sections of the cash flow statement.
2. Explain why the first section may be confusing.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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Simple Interest, Compound interest, discount rate, force of interest, AV, PV
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