Which of the following is not true about the discount on short-term notes payable? The Discount on Notes Payable account has a debit balance. When there is a discount on a note payable, the effective interest rate is higher than the stated discount rate. Discount on Notes Payable is a contra account to Notes Payable. The Discount on Notes Payable account should be reported as an asset on the balance sheet.

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?