1) A transaction where a company receives money from customers for products to be

delivered in the future should be recorded as

a. Revenue and an asset

b. An asset and a liability

c. Revenue and a liability

2) You have the following information for Star, Inc. for its 2017 FY

Net Income. $20 million

Depreciation. $2 million

Accounts receivable. $3 million decrease from the previous FY

Inventory. $4 million increase from the previous FY

Accounts payable. $5 million increase from the previous FY

What is Stars operating cash flow for FY 2017?

a. $22 million

b. $26 million

c. $14 million