3.5 CLASSIFICATION OF CHANGES IN SHORT-TERM FINANCING.The statement of cash flows classifies changes in accounts payable as an operating activity but classifies changes in short-term borrowing as a financing activity. Explain this apparent paradox.3.7 COMPUTING CASH COLLECTIONS FROM CUSTOMERS. Caterpillar manufactures heavy machinery and equipment and provides financing for purchases by its customers. Caterpillar reported sales and interest revenues of $51,324 million for 2008. The balance sheet showed current and noncurrent receivables of $15,752 million at the begin- ning of 2008 and $18,448 million at the end of 2008. Compute the amount of cash collected from customers during 2008.3.8 COMPUTING CASH PAYMENTS TO SUPPLIERS. Lowe’s Companies, a retailer of home improvement products, reported cost of goods sold of $31,729 million for the fiscal year ended January 30, 2009. It reported merchandise inventories of $7,611 mil- lion at the beginning of fiscal 2009 and $8,209 million at the end of fiscal 2009. It reported accounts payable to suppliers of $3,713 million at the beginning of fiscal 2009 and $4,109 million at the end of fiscal 2009. Compute the amount of cash paid to merchandise suppli- ers during fiscal 2009.3.9 COMPUTING CASH PAYMENTS FOR INCOME TAXES. Visa Inc., the credit card company, reported income tax expense of $1,648 million for 2008, comprising $1,346 million of current taxes and $302 million of deferred taxes. The balance sheet showed income taxes payable of $122 million at the beginning of 2008 and $327 million at the end of 2008. Compute the amount of income taxes paid in cash during 2008.
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