1. Toolson Corporation reported net income of $160,000 for the current year ended June 30. Accounts receivable had a beginning balance of $34,000 and an ending balance of $48,000. Accounts payable had a beginning balance of $29,000 and an ending balance of $45,000. Assuming that this is all of the relevant information, Toolson's cash flows from operating activities are ________.

a. $130,000 b. $162,000 c. $158,000 d. $190,000

2. JKL Company enters into a contract with Craven Library to help them streamline their purchasing process. The contract specifies that Craven Library will pay JKL $270,000 in the form of a fixed fee plus an additional $10,000 if the library achieves $200,000 in cost savings. JKL estimates a 55% chance that the library will achieve a $200,000 savings. Assuming JKL estimates that the transaction price is the expected value transaction price. The transaction price is recorded as ________.

a. $270,000 b. $275,500 c. $280,000 d. $264,500