1. Identify the working capital accounts related to a revenues recognized and deferred, cost of goods sold,employee salary and wages and income tax expense. For each account, indicate whether an increase in the working capital asset or liability would be an addition or subtraction when reconciling from net income to cash flows from operations.

2. Using the following key, identify the effects of the following transactions or conditions on the various financial statement elements: I =increases, D=decreased, NE= no effect for assets, liabilities, shareholder'equity, net income A credit sale Collection of a portion of accounts receivable estimate of bad debts write off of a specific uncollectible account