How will the transaction appear on the richardson january

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Problem 1: Employees of Richardson Co. worked the week ending December 31, but will not be paid until January. How will this transaction appear on the Richardson's January statement of cash flows?

Option 1: An increase in cash in the operating activities section
Option 2: A decrease in cash in the operating activities section
Option 3: An increase in cash in the financing activities section
Option 4: A decrease in cash in the financing activities section
Option 5: Does not appear in the statement of cash flows

Reference no: EM132939989

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