Operating Cash Flows (Direct Method) Calculate the cash flow in each of the following cases: a. Cash paid for advertising: Advertising expense $62,000 Prepaid advertising, January 1 13,000 Prepaid advertising, December 31 15,000 Cash Flow Answer b. Cash paid for income taxes: Income tax expense $31,000 Income tax payable, January 1 7,100 Income tax payable, December 31 5,900 Cash Flow Answer c. Cash paid for merchandise purchased: Cost of goods sold $180,000 Inventory, January 1 30,000 Inventory, December 31 24,000 Accounts payable, January 1 10,000 Accounts payable, December 31 11,000 Cash Flow Answer

Answer the questions about keynesian theory, market economics, and government policy. keynes believed that there were "sticky" wages and that recessions are caused by increases in prices. decreases in supply. decreases in aggregate demand (ad). increases in unemployment. keynes believed the government should increase ad through increased government spending, but not tax cuts. control wages to increase employment because of sticky wages. increase employment through tax cuts only. increase as through tax cuts. increase ad through either increased government spending or tax cuts. intervene when individual markets fail by controlling prices and production.