100 points MC Qu. 120 Braden and Sons, Inc. borrowed First Netsonal Bank How sho

Question

100 points MC Qu. 120 Braden and Sons, Inc. borrowed First Netsonal Bank How should hese ransections be isted in the Satement of and Loan lest year In addtion, the company repaid a $450,000 note payable to Braden and Sons, Inc. bornowed $700,000 cash from Tremon Savings Cash Rows ?Benden can contre the transectors and show anroease to cashofS250000 inthe merged ees secon orte aasenet O Braden can combine the trensactions and show an increase to cash of $250,000 in the financing acvses section or O A decrease so cash for $450000 is asted in the investing activines section and an incresse of the statemen $700.000 is in the fiancing actvnes section Transacsons mast be shown separabely as o decrease to cash for $450.000 and an incresse of $700,000 in the financing actvbies MC Ou.120 ren and Sons Inc boowed Mutiple Choic pn sc 5 7

Explanation / Answer

This transaction is from financing activity when borrow 700000 it means net cash flow increase by 700000 and repaid 450000 from note payable represent decrease cash flow

so answer is d) Transaction must be shown seprately as a decrease to cash for $450000 and increase of $700000 in financing activity section.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.