a) A capital lease is commonly used as an alternative to owning an asset. Capital leases typically last for most of the life of the asset and the lease payment may approximate the cost of purchasing the asset. Identify four advantages of capital leases over owning property. Respond in 4 - 5 sentences.

b) The statement of cash flows is vital in conveying financial information to investors and creditors. It details where the company is obtaining cash and where the company is expending cash. Differentiate between investing activities, financing activities, and operating activities.

c) The statement of cash flows is vital in conveying financial information to investors and creditors. It details where the company is obtaining cash and where the company is expending cash. Differentiate between investing activities, financing activities, and operating activities.