Lopez Corp. uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2014: 1)Long-Term Notes Payable, beginning balance, $80,000
2)Long-Term Notes Payable, ending balance, $76,000
3)Common Stock, beginning balance, $3,000
4)Common Stock, ending balance, $26,000
5)Retained Earnings, beginning balance, $75,000
6)Retained Earnings, ending balance, $115,000
7)Treasury Stock, beginning balance, $6,000
8)Treasury Stock, ending balance, $10,000
9)No stock was retired.
10)No treasury stock was sold.
11)During 2014, the company repaid $36,000 of Long-Term Notes Payable.
12)During 2014, the company borrowed $32,000 on a new Note Payable.
13)Net income for the year was $49,000.
"14)Assume all dividends declared during the year were paid.
How much was the net cash flow from financing activities?"
A)$2,000
B)$10,000
C)$(6,000)
D)$6,000

Question

Quizplus · Accepted Answer

The Answer of Lopez Corp. uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2014: 1)Long-Term Notes Payable, beginning balance, $80,000
2)Long-Term Notes Payable, ending balance, $76,000
3)Common Stock, beginning balance, $3,000
4)Common Stock, ending balance, $26,000
5)Retained Earnings, beginning balance, $75,000
6)Retained Earnings, ending balance, $115,000
7)Treasury Stock, beginning balance, $6,000
8)Treasury Stock, ending balance, $10,000
9)No stock was retired.
10)No treasury stock was sold.
11)During 2014, the company repaid $36,000 of Long-Term Notes Payable.
12)During 2014, the company borrowed $32,000 on a new Note Payable.
13)Net income for the year was $49,000.
"14)Assume all dividends declared during the year were paid.
How much was the net cash flow from financing activities?"
A)$2,000
B)$10,000
C)$(6,000)
D)$6,000