Riley Company borrowed $40,000 on April 1, Year 1 from Titan Bank. The note issued by Riley carried a one-year term and a 7% annual interest rate. Riley earned cash revenues of $1060 during Year 1 and $1500 during Year 2. Assume no other transactions.Based on this information alone, what amount of cash flow from operating activities would appear on the Year 2 statement of cash flows?
A. $1500 inflow.
B. $40,800 outflow.
C. $1300 outflow.
D. $800 inflow.
Answer: C
You might also like to view...
If past experience reveals that 1 person out of 10 will buy a product, then 50 sales calls could result in five sales. This is an example of:
A. center of influence. B. cold canvassing. C. endless chain referral method. D. networking. E. one-to-one referral method.
What are the advantages and disadvantages of individual versus team rewards?
What will be an ideal response?
Max Shell borrows money from a bank to finance his clothing business. He signs a demand loan. After 10 year of operating his business and making regular payments on his line of credit, he begins to experience financial difficulty
The bank gets nervous and calls in the loan. Max meets with the bank manager and asks for time to raise the money. The manager says, "Sorry, Max, business is business." Max leaves the bank, returns to the store, and finds a bank-appointed receiver in charge. Is there anything Max can do? A) No. A demand loan means that the bank can demand repayment at any time. B) No. Max would have been better off signing a term loan rather than a demand loan, since he would then have had to the end of the term to come up with the money. C) Yes. The bank did not act in good faith and the courts will apply principles of equity. D) Yes. Even though this was a demand loan, the bank was obliged to give Max a reasonable amount of time to meet the demand. E) Both A and B
The secondary dimensions of diversity include all of the following, except:
a. Marital status b. Religion c. Education d. Ethnicity