Assume that you are nearing graduation and have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses time value of money analysis. See how you would do by answering the following questions. 1. Draw time lines for:

a. A $100 lump sum cash flow at the end of Year 2.
b. An ordinary annuity of $100 per year for 3 years.
c. An uneven cash flow stream of -$50, $100, $75, and $50 at the end of Years 0 through 3.

2. What is the future value of an initial $100 after 3 years if it is invested in an account paying 10 percent annual interest?
3. What is the present value of $100 to be received in 3 years if the appropriate interest rate is 10 percent?

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?