The FASB prefers the indirect method of preparing the operating activities section of the statement of cash flows

A company began the year with $200,000 in cash. For the year it achieved $1,000,000 in revenue. Its variable costs are $700,000 and fixed costs (including interest) $350,000. Assume no depreciation (i.e., no equipment). It pays $50,000 in dividends. Which of the following result?

a) It suffered a net loss of $50,000 and its new book value is lower by $100,000 b) It suffered a net loss of $50,000 and its new book value is lower by $50,000. c) It suffered a net loss of $100,000 and its new book value is lower by $50,000. d) It suffered a net loss of $100,000 and its new book value is lower by $100,000

The gap between productivity and real hourly compensation was the highest during which of the following periods?

A) 1947-1973 B) 1979-1990 C) 1990-2000 D) 2000-2011