A drawback of the waterfall method is the inability to make changes to previous stages once they are complete

Compound interest uses the accumulated balance at each year end to compute interest in the succeeding year.

a. true b. false

Message Company uses the indirect method to prepare its statement of cash flows

Refer to the following portion of the comparative balance sheet: Message Company Comparative Balance Sheet December 31, 2017 and 2016 2016 2015 Increase/(Decrease) Common Stock $18,000 $12,400 $5,600 Retained Earnings 113,000 80,000 33,000 Treasury Stock (8,000 ) (5,400 ) (2,600 ) Total Equity $123,000 $87,000 $36,000 Note: 1. There was no retirement of stock during the year. 2. There were no sales of treasury stock during the year. Which of the following statements is correct? A) There was zero net cash flow from transactions involving Common Stock. B) There was a negative cash flow of $5,600 from the issuance of Common Stock. C) There was a positive cash flow of $5,600 from the issuance of Common Stock. D) There was positive cash flow of $18,000 from issuance of Common Stock.