B owes C $3,000 per year, due over the next six years. However, C would prefer to have the cash now and wants to make an offer to B for settlement at this time. If you were B, to the nearest dollar what is the maximum you would be willing to pay (assuming you have the cash to pay) in settlement today if the current interest rate is 15 percent? (Assume the first payment is due one year from today.)

Select one: a. $11,353 b. $13,787 c. $15,300 d. None of the above

2. Digitex Inc. factored $50,000 of its accounts receivable with recourse. The factor retained 8% for sales adjustments and charged $3,000 as a financing fee. Estimated and actual amounts are as follows: Assume the transfer is recorded as a loan by Digitex. What is Digitex's net liability balance immediately following the transfer?

Select one:

a. $50,000

b. $43,000

c. $47,000

d. $46,000

3.

In a Statement of Cash Flows:

Select one:

a. net cash flow from operating activities may be less than or greater than net income

b. Net cash flow from operating activities is always the same as net income.

c. Net cash flow from operating activities must be the same as net increase in cash during the period.

d. Net cash flow from operating activities is always less than net income.

e. Net cash flow from operating activities is always greater than net income.