Question Help Tritan Company is preparing its statement of cash flows using the
ID: 2528654 • Letter: Q
Question
Question Help
Tritan Company is preparing its statement of cash flows using the indirect method. Refer to the following portion of the comparative balance sheet:
Tritan Company
Comparative Balance Sheet
December 31, 2017 and 2016
2016
2015
Increase/(Decrease)
Accounts Payable
$4,000
$8,000
minus$4,000
Accrued Liabilities
2,500
1,200
1,300
Long-term Notes Payable
55,000
67,000
$(12,000)
Total Liabilities
$61,500
$76,200
$(14,700)
Additional information provided by the company includes the following:
1. During 2016, the company repaid $35,000 of long-term notes payable.
2. During 2016, the company borrowed $23,000 on a new note payable.
Based on the above information only, what amount of net cash flow would be shown in the financing section of the statement of cash flows?
A.
$(12,000)
B.
$58,000
C.
$(58,000)
D.
$12,000
Click to select your answer.
Explanation / Answer
Answer A - "$(12,000)
Net cash flow would be shown in the financing section of the statement of cash? flows
Borrowing of Note Payable $12,000
Less : Repayment of Long term note payable ($35,000)
Net Cash flow from financing activity ($12,000)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.