What is the impact of the statement of cash flow

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Question - On January 2, 20x5, Abigail Co. sold inventory to a customer on the following terms: $200,000 payable for 5 years on December 31 of each year (i.e. the first payment is due on December 31, 20x5). Abigail's incremental borrowing rate is 5% and the customer's incremental borrowing rate is 6.5%.

What is the impact of the above on the Statement of Cash Flow for the year ended December 31, 20x5 for both the indirect and direct methods?

Reference no: EM132436909

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