Fact Pattern 2-1 Yoshi, a Japanese Citizen Working in Atlanta for His Tokyo

question 118

True/False

Fact Pattern 2-1
Yoshi, a Japanese citizen working in Atlanta for his Tokyo firm, decided to rent an airplane and fly himself to the Annual Catfish and Zydeco festival in Thibodaux, Louisiana. He rented a small plane to fly there. Over Alabama, thunderstorms formed. Because Yoshi was not trained to fly by instruments, he decided to land at the next airport.
As he searched for a runway, Yoshi heard a loud clank followed by silence as the engine died. He tried to land in a field but crashed. While recovering in a rehabilitation center in California, Yoshi filed suit there against the Atlanta Airport and the owners of the airplane, alleging that they were negligent in their maintenance.
-Refer to Fact Pattern 2-1. If Yoshi's case was tried in federal court in California, and the substantive issue of law involved was liability for the injuries arising from Yoshi's crash, the court would apply the common law of California.

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Definitions:

Statement of Cash Flows

A financial document that summarizes the amount of cash and cash equivalents entering and leaving a company, essentially showing how the company raises and spends money.

Operating Activities

Activities directly related to the day-to-day operations and business functions such as sales, purchase of inventory, and payment of wages that affect the cash flow of a company.

Financing Activities

These activities include transactions and events that affect the long-term liabilities and equity of an entity, such as issuing debt or equity securities.

Investing Activities

Activities reported on the cash flow statement that relate to the acquisition and disposal of long-term assets and other investments not considered cash equivalents.