Oklahoma Corp. uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2018:
1. Long-Term Notes Payable, beginning balance, $83,000
2. Long-Term Notes Payable, ending balance, $75,000
3. Common Stock, beginning balance, $3,000
4. Common Stock, ending balance, $26,000
5. Retained Earnings, beginning balance, $78,000
6. Retained Earnings, ending balance, $118,000
7. Treasury Stock, beginning balance, $5,700
8. Treasury Stock, ending balance, $10,500
9. No stock was retired.
10. No treasury stock was sold.
11. During 2018, the company repaid $38,000 of long-term notes payable.
12. During 2018, the company borrowed $30,000 on new long-term notes payable.
O A. $1,200
O B. ($8,000)
O c. $18,200
OD. $9,200

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept, the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year. to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51