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On January 1 of the Current Year, Bratton Manufacturing Borrowed

Question 91

Multiple Choice

On January 1 of the current year, Bratton Manufacturing borrowed $1,000,000 from the First National Bank.On June 30 and December 31, Bratton made principal payments of $10,000 each.How will these transactions be reported in the statement of cash flows?


A) $1,000,000 source of cash and $20,000 use of cash, both shown in the financing section
B) $1,000,000 source of cash in the financing section and $20,000 use of cash in the operating section
C) $1,000,000 source of cash in the investing section and $20,000 use of cash in the operating section
D) $1,000,000 source of cash and $20,000 use of cash, both shown in the investing section

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