7.共6个调整数据，做对一个2分，合计数对2分，计14分。
Cash flows from operating activities：
Net income …………………………………………………………… $260000
Adjustment for non cash revenue and expenses：
Added (less)： depreciation ……………………………$90000
Loss on sale of machinery ……………$2400
Patent amortization …………………$14800
Amortization of premium on bond …。($4600) $102600
Working capital changes：
Accounts receivable increase …………($2000)
Accounts payable increase …………$8400 $6400
Cash flows from operating activities ………………………………$369000
8.项目1和项目3正确表述各4分，项目2正确表述3分。
Item 1： This item is a prepaid expenses and not properly recorded. Half of this expenses should be charged to the repair and maintenance account in the current year， half of this expenses should be deferred to next year.
Item 2： This item is properly charged the account， because that is for regulative repairs.
Item 3： This item is not properly charged， because this expenditure is for increasing the efficiency of production and should be capitalized.
