Answer:
Would not exercise its currency option
Explanation:
Currency options are one of the most common ways for corporations , individuals or financial institutions to hedge against adverse movements in exchange rates.
A currency option is a contract that gives the buyer the right , but not the obligation, to buy or sell a certain currency at a specified exchange rate on or before a specified date.
<span>M1 is comprised of currency held outside banks + traveler’s checks + Checkable Deposits
Checkable deposits are a bank account which contain the amount of fund that you could use to write a check. In most cases, as long as the amount is sufficient, there is no restriction or limitation for this account</span>
Cash receipts from customers = $136,000
cash payment for operating expenses = $102,000
tax paid = 1 / 3
Amount on which tax paid = $9,300
amount of tax paid = $9,300 / 3 = $3,100
net cash provides by operating activities = ?
Net cash = cash from customers - cash payment for operating expense - amount of tax paid
= $136,000 - $102,000 - $3,100
= $30,900
so the net cash provided by operating activities is $30,900
Answer: The answer is e. $215,000.
Explanation: Based on the information provided in the question, see the cash flows statement below:
XYZ Cash Flows Statement
Net income $180,000
Increase in account receivable (15,000)
Increase in accounts payable 50,000
Cash flows from operating activities $215,000
- Note that the purchase of equipment of $50,000 cash would not be considered under cash flows from operating activities but would rather be considered under cash flows from investing activities.
- Increase in accounts receivable means outflow of cash while increase in accounts payable means non-payment of debt, that is, inflow of cash.
