The independent cases are listed below includes all balance sheet accounts related to operating activities:
Case A Case B Case C
Net income $ 303,000 $ 11,500 $ 413,000
Depreciation expense 33,000 143,000 73,000
Accounts receivable increase (decrease) 86,000 (193,000) (13,000)
Inventory increase (decrease) (43,000) 28,000 43,000
Accounts payable increase (decrease) (43,000) 113,000 63,000
Accrued liabilities increase (decrease) 53,000 (213,000) (33,000)
Required:
1. Show the operating activities section of cash flows for each of the given cases. (Amounts to be deducted should be indicated with minus sign.)
Case A Case B Case C
Net Income
Adjustments to Reconcile Net income to Net Cash Provided by Operating Activities
Depreciation
Changes in Assets and Liabilities
Accounts Receivable
Inventory
Accounts Payable
Accrued Liabilities
Net Cash Provided by Operating Activities

Explanation:

Cash flow from operating activities:

Case ACase BCase C

Net Income 3,03,000 11,5004,13,000

Depreciation Expense 33,000 1,43,000 73,000

Accounts Receivable increase(decrease) -86,000 1,93,000 13,000

Inventory increase(decrease) 43,000 -28,000 -43,000

Accounts Payable increase(decrease) -43,000 1,13,000 63,000

Accrued Liabilities increase(decrease) 53,000-2,13,000 -33,000

Net Cash provided by Operating activities 3,03,000 2,19,5004,86,000

See answer and explanation below.

Explanation:

Details                                         Case A ($)      Case B ($)      Case C ($)

Net income                                   303,000            11,500         413,000

Depreciation expense                   33,000          143,000          73,000

Changes in Assets and Liab.:

Accounts receivable                    (86,000)         193,000           13,000

Inventory                                        43,000          (28,000)         (43,000)

Accounts payable                         (43,000)         113,000           63,000

Accrued liabilities                          53,000         (213,000)       (33,000)

Net Cash from Operating Act.   303,000         219,500       486,000

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of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.