operating cycle of the business or one year, whichever is longer whichever is shorter 6 Current One year assets are cash and other assotsthat will be coeverted into cash or used up within operating cycle of the business D) The normal operating cycle of the business or one ycar, 180,000 52,000 24,000 700,000 268,000 7 The accounting record for Max II Company reported the following Operating Expenses Sales Retums and Allowances Sales Discounts Sales Revenue Cost of Goods Sold Determine Max I1l Company's gross profit A) $308,000 B) $356,000 332,000 K Presented below is the Statement of Cash Flows for Johanna Originals Clothing Company OHANNA ORIGINALS CLOTHING COMPANY Statement of Cash Flows For Year Ended December 31, 2016 Cash flows from operating activities Received from sales to cuslomers Interest income roceived S 2,000,000 40,000 Payment for invensory Payment to employees (320,000) Net increase from operating activities Cash flows from investing activities: $ 1.480,000 Payment for stock of another company Payment for purchase of equipment Net decrease from investing activities (200,000) 5(1,000,000) Cash flows from financing activities Received from loans from bank From issuance of common stock From issuance of bonds Payment of dividends Net increase from financing activities s 200,000 600,000 400,000 Net increase in cash the company's free cash flow S 1.500.000 A) ($600,000) B)($520,000) C) $480,000 D) 5680,000