Karaoke Records Company uses the indirect method to prepare its statement of cash flows. Refer to the following sections of the comparative balance sheet: Additional information for 2017:
• No stock was retired.
• No treasury stock was sold.
• The company repaid $60,000 of long-term notes payable.
• The company borrowed $51,000 on a new long-term note payable.
• Net income for the year was $68,000.
Prepare the financing section of the statement of cash flows for the year ended December 31, 2017.

Question

Karaoke Records Company uses the indirect method to prepare its statement of cash flows. Refer to the following sections of the comparative balance sheet:  Additional information for 2017:
• No stock was retired.
• No treasury stock was sold.
• The company repaid $60,000 of long-term notes payable.
• The company borrowed $51,000 on a new long-term note payable.
• Net income for the year was $68,000.
Prepare the financing section of the statement of cash flows for the year ended December 31, 2017.

Quizplus · Accepted Answer

The Answer of Karaoke Records Company uses the indirect method to prepare its statement of cash flows. Refer to the following sections of the comparative balance sheet:  Additional information for 2017:
• No stock was retired.
• No treasury stock was sold.
• The company repaid $60,000 of long-term notes payable.
• The company borrowed $51,000 on a new long-term note payable.
• Net income for the year was $68,000.
Prepare the financing section of the statement of cash flows for the year ended December 31, 2017.

Karaoke Records Company Uses the Indirect Method to Prepare Its