Preferred Pet Care, Inc., successfully took out a loan for $130,000 from Southwest Bank. It used $80,000 of this loan to pay off an existing loan that had a higher interest rate, and purchased X-ray equipment with the remaining funds. These events were noted as financing and investing activities on its balance sheet.

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The Answer of Preferred Pet Care, Inc., successfully took out a loan for $130,000 from Southwest Bank. It used $80,000 of this loan to pay off an existing loan that had a higher interest rate, and purchased X-ray equipment with the remaining funds. These events were noted as financing and investing activities on its balance sheet.