Statement of Cash Flows Café Creations Inc.has net cash flow from financing activities for the last year of $25 million.The company paid $15 million in dividends last year.During the year,the change in notes payable on the balance sheet was a decrease of $40 million,and change in common and preferred stock was an increase of $50 million.The end of year balance for long-term debt was $40 million.What was their beginning of year balance for long-term debt?
A)$10 million
B)$20 million
C)$30 million
D)$40 million

Question

Quizplus · Accepted Answer

The beginning of year balance for long-term debt is $10 million. This is calculated by adding the net cash flow from financing activities ($25 million), dividends paid ($15 million), and the decrease in notes payable ($40 million), and then subtracting the increase in common and preferred stock ($50 million).