Gingerich Company's comparative balance sheet and income statement for last year are as follows: Balance Sheet Ending Balance Beginning Balance Cash $45,000 $27,000 Accounts receivable 39,000 30,000 Inventory 30,000 44,000 Prepaid expenses 14,000 19,000 Long-term investments 280,000 200,000 Plant and equipment 600,000 600,000 Accumulated depreciation (322,000) (291,000) Total assets $686,000 $629,000 Accounts payable $19,000 $34,000 Accrued liabilities 37,000 25,000 Taxes payable 32,000 14,000 Deferred taxes payable 28,000 22,000 Bonds payable 100,000 150,000 Common stock 100,000 70,000 Retained earnings 370,000 314,000 Total liabilities and stockholders' equity $686,000 $629,000 Income Statement Sales $800,000 Less: Cost of goods sold 430,000 Gross margin 370,000 Less: Operating expenses 230,000 Net operating income 140,000 Less: Income taxes 42,000 Net income $98,000 The company declared and paid $42,000 in cash dividends during the year. Required: Using the direct method, prepare each of the following activities sections of the company's statement of cash flows for the year. Amounts to be deducted should be indicated by a minus sign.

The following selected circumstances relate to pending lawsuits for erismus, inc. erismus’s fiscal year ends on december 31. financial statements are issued in march 2019. erismus prepares its financial statements according to ifrs. required: indicate the amount erismus would record as an asset, liability, or not accrued in the following circumstances. 1. erismus is defending against a lawsuit. erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $2,000,000. 2. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages could fall anywhere in the range of $3,000,000 to $5,000,000, with any damage in that range equally likely. 3. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages will eventually be $6,000,000, with a present value of $4,500,000. 4. erismus is a plaintiff in a lawsuit. erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $2,000,000. 5. erismus is a plaintiff in a lawsuit. erismus’s management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000.