1. junior owes creditor iba $1,000, which is due and payable on june 1. junior has been in a car accident, has missed a great deal of work, and consequently will not have the funds on june 1. junior’s father, fred, offers to pay iba $1,100 in four equal installments if iba will discharge junior from any further liability on the debt. iba accepts. is this transaction a novation or an accord and satisfaction? what if fred defaults on his payments to iba? who can iba sue if she does not receive payment? explain. does this transaction have the required contractual consideration?

Prepare the operating activities section—indirect method.(lo 4), apthe income statement of paxson company is presented here.paxson companyincome statementfor the year ended november 30, 2014sales revenue $7,600,000cost of goods sold beginning inventory$1,900,000 purchases4,400,000goods available for sale6,300,000 ending inventory1,600,000total cost of goods sold 4,700,000gross profit 2,900,000operating expenses selling expenses450,000 administrative expenses700,0001,150,000net income $1,750,000additional information: prepare the operating activities section—indirect 1. accounts receivable decreased $380,000 during the year, and inventory decreased $300,000.2. prepaid expenses increased $150,000 during the year.3. accounts payable to suppliers of merchandise decreased $350,000 during the year.4. accrued expenses payable decreased $100,000 during the year.5. administrative expenses include depreciation expense of $110,000.instructionsprepare the operating activities section of the statement of cash flows for the year ended november 30, 2014, for paxson company, using the indirect method.net cash provided $1,940,000