Reference no: EM132914992

Problem 1: Nutrition Inc. bought land by making a cash down payment and borrowing (mortgage) the remaining balance. How would the mortgage be shown on a statement of cash flows?

Option 1: increase in cash from an investing activity

Option 2: noncash investing and financing activity

Option 3: decrease in cash from an operating activity

Option 4: decrease in cash from an investing activity

Option 5: decrease in cash from a financing activity

Option 6: -increase in cash from a financing activity

Problem 2: Torchglow, Co. had total current assets of $83,000 and total long-term assets of $615,000. Torchglow had no other assets. Torchglow has had total current liabilities of $43,000 and total long-term liabilities of $361,000. How much of Torchglow's assets were financed with equity?

Option 1: 58.7%

Option 2: 57.9%

Option 3: 51.7%

Option 4: 42.1%