A house painting business had revenues of $16,500 and expenses of $9,500 last summer. There were no depreciation expenses. However, the business reported the following changes in working capital: Beginning of Year End of Year
Accounts receivable $1,700 $5,000
Accounts payable 800 350
Calculate net cash flow for the business for this period.

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value