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QUESTION? Use the information below for the following four questions On June 30, 2021, Saleh Fixtures wwe considering alternative to bolster its cash position Option

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QUESTION? Use the information below for the following four questions On June 30, 2021, Saleh Fixtures wwe considering alternative to bolster its cash position Option 1: Transferring $400,000 in accounts receivable to Firmino France Company without recourse for a 5% foe. Option 2: Transferring $400,000 in accounts receivable to mine with recourse Firmino charges 24% fee for receivables factored with recourse. Under this option, ale estimates a $3,000 recourse liability Under ether option, Firmino will immediately remit 80% of the factored receivables to Salah and retain 10%. When Firmino collect the remaining receivables, it romits the amountless the foe, to Salah salah estimates that the fair value of the retained portion of the receivables is $25,000 (ignoring the factoring fee. The amount of low on sale of receivables to be reported by Salah is: Option 1 - 35,000 Option 2 - 34,000 Option 1 - 35,000 Option 2 - 31,000 Option 1 - 20,000 Option2 - 16,000 Option1 - 20,000 Option2 - 19,000 QUESTION 9 The amount of receivable from factor to be reported by Salah is: Option 1 - 40,000 Option 2 - 40,000 Option 1 - 25,000 Option 2 - 28,000 Option 1-5,000 Option2 - 9,000 Option 1 - 9,000 Option2 - 12,000 QUESTION 10 The effect of Option 1 on Salah's balance sheet is: ASSETS - Decrease LIABILITIES - Increase EQUITY - Decrease ASSETS - Increase LIABILITIES - No effect ASSETS - Increase ASSETS - Decrease EQUITY - Increase EQUITY - Decrease LIABILITIES - Increase LIABILITIES - No effect EQUITY - Decrease QUESTION 11 The effect of Option 2 on Salah's balance sheet is: ASSETS - Decrease LIABILITIES - Increase ASSETS - Increase LIABILITIES - No effect ASSETS - Increase LIABILITIES - Increase EQUITY - Decrease EQUITY - Increase EQUITY - Decrease ASSETS - Decrease LIABILITIES - No effect EQUITY - Decrease

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