1. Allen company bought a new copy machine to be depreciated straight line for three years for use by sales personnel. where would this purchase be reflected on the statement of cash flows?
2. Company A can borrow fixed at 13.3 percent and floating at LIBOR+ 0.6 percent. Company B can borrow fixed at 12.1 percent and floating at LIBOR+ 0 percent. If a financial intermediary charges a fee of 0.12 percent, what is the gain to each party to the swap? Assume the gain is evenly split between the two parties.