Question: 1. Goal Line Products makes several year-end adjustments, including an increase in the allowance for uncollectible accounts, a write-down of inventory, a decrease in the estimated useful life for depreciation, and an increase in the liability reported for litigation. What, if anything, do all these adjustments have in common?
2. Provide an example of an adjustment that improves the income statement(IS) and the balance sheet, but has no effect on cash flows.