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Let's address questions 7 and 8 one by one:

### Question 7:
**On January 1, the long-term liability section of Barrel & Company’s balance sheet showed a balance of $400 million in long-term notes payable. On December 31, the balance in that same account was $60 million. How should the company report the cash flow effect related to the change in this account on its statement of cash flow?**
- As a cash outflow of $340 million in the financing section
- As a cash outflow of $340 million in the investing section
- As a cash outflow of $460 million in the financing section
- As a cash outflow of $460 million in the investing section

**Answer:**
This question is asking how to account for the decrease in long-term notes payable, which is a liability. A reduction in long-term liabilities typically indicates that the company repaid debt. Repayment of long-term debt is categorized under the **financing section** of the statement of cash flows, and the change in the balance of the liability account is:

\[
400 \, \text{million} - 60 \, \text{million} = 340 \, \text{million}
\]

Thus, the correct answer is:
- **As a cash outflow of $340 million in the financing section.**

---

### Question 8:
**The Friends Company reports sales revenue of $300,000 on its income statement. Its balance sheet reveals beginning and ending accounts receivable of $60,000 and $56,400, respectively. What is the amount collected from customers of the company?**

The formula to calculate the amount collected from customers is:

\[
\text{Amount Collected} = \text{Sales Revenue} + \text{Beginning Accounts Receivable} - \text{Ending Accounts Receivable}
\]

Substituting the values:

\[
\text{Amount Collected} = 300,000 + 60,000 - 56,400 = 303,600
\]

Thus, the correct answer is:
- **$303,600.**

---

Would you like more details or have any follow-up questions on these?

Here are 5 related questions for deeper understanding:
1. How are changes in liabilities reported in the financing section of cash flow statements?
2. What other transactions fall under the financing activities section of the cash flow statement?
3. How does the indirect method of calculating cash flows differ from the direct method?
4. What is the impact of accounts receivable changes on cash flow from operating activities?
5. How do companies decide whether to include certain cash flows in the financing or investing sections?

**Tip:** When analyzing changes in balance sheet accounts for cash flow purposes, always identify whether they relate to operating, financing, or investing activities based on the nature of the account.

On January 1, the long-term liability section of Barrel & Company’s balance sheet showed a balance of $400 million in long-term notes payable. On December 31, the balance in that same account was $60 million. How should the company report the cash flow effect related to the change in this account on its statement of cash flow?

The Friends Company reports sales revenue of $300,000 on its income statement. Its balance sheet reveals beginning and ending accounts receivable of $60,000 and $56,400, respectively. What is the amount collected from customers of the company?

Understand how to report changes in long-term liabilities in the cash flow statement and calculate the amount collected from customers based on sales revenue and changes in accounts receivable.

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