I guess the correct answer is making an observation
Making an observation requires you to use your senses to obtain information
Contractionary Fiscal Policy
There are two methods used to control the economy one which is a monetary policy which has to do with the federal reserve and then there is a fiscal policy which certain parts of government have control of. So since the question states government is the one responsible we know that it has to be a type of fiscal policy. Because the economy is moving too fast and they may want to slow it down to prevent inflation or a future recession, they will use contractionary fiscal policy to slow down growth by increasing taxes or decreasing spending.
Answer and Explanation:
The preparation of the operating activities section is presented below:
Cash flows from operating activities
Net income $374,000
Adjustments made
Add: Depreciation $44,000
add: Amortisation expanses $7,200
Add: Accounts receivable decrease $17,100
Add: Inventory decrease $42,000
Less: Prepaid expense increase -$4,700
Less: Accounts payable decrease -$8,200
Add: Wages payable increases $1,200
Less: Gain on sale of machinery -$6,000
Net cash provided by operating activities $466,600
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