What are the risk options ?
Answer:
C) reciprocity
Explanation:
Based on the information provided within the question it can be said that this scenario is an example of reciprocity. This term refers to exchanging one thing for another in which both parties benefit in their own unique way. Which is the case since Bob buys equipment from Allied Tools which generates revenue for Allied Tools thus benefiting them, and Allied Tools hires Bob periodically which generates revenue for Bob thus benefiting him.
Answer:
$35,000
Explanation:
Requirement: Prepare the Operating Activities section of the Statement of Cash Flows for the year ended 2004. Use the INDIRECT Method
Cash from Operating Activities
Particulars Amount$
Net income 6000
Add: Depreciation expense <u>50000</u>
Operating Cash Flow before 56000
Change in Working Capital
Add:
Decrease in inventory 3000
Increase in incomes taxes payable 7000 <u>10000</u>
Less:
Increase in accounts receivable 10000
Increase in prepaid Rent 8000
Decrease in accounts payable 7000
Decrease in salaries payable 6000 <u>-31000</u>
Cash from Operating Activities <u>$35000</u>