Hepburn Company transferred $58,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 60% of the factored amount to Hepburn and retains the remaining 40%. When the bank collects the receivables, it will remit to Hepburn the retained amount less a fee equal to 1% of the total amount factored. Hepburn estimates a fair value of its 15% interest in the receivables of $12,000 (not including the 1% fee). Hepburn will show an amount receivable from factor of: Multiple Choice $23,200. $12,000. $11,420. $22,620.

Prepare the operating activities section—indirect method.(lo 4), apthe income statement of paxson company is presented here.paxson companyincome statementfor the year ended november 30, 2014sales revenue $7,600,000cost of goods sold beginning inventory$1,900,000 purchases4,400,000goods available for sale6,300,000 ending inventory1,600,000total cost of goods sold 4,700,000gross profit 2,900,000operating expenses selling expenses450,000 administrative expenses700,0001,150,000net income $1,750,000additional information: prepare the operating activities section—indirect 1. accounts receivable decreased $380,000 during the year, and inventory decreased $300,000.2. prepaid expenses increased $150,000 during the year.3. accounts payable to suppliers of merchandise decreased $350,000 during the year.4. accrued expenses payable decreased $100,000 during the year.5. administrative expenses include depreciation expense of $110,000.instructionsprepare the operating activities section of the statement of cash flows for the year ended november 30, 2014, for paxson company, using the indirect method.net cash provided $1,940,000