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On July 31st of the Current Year Bridges Industries Borrowed

Question 109

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On July 31st of the current year Bridges Industries borrowed $50,000 from the First National Bank.On December 31st the company made its first payment of $1,000,of which $900 was applied to principal and $100 was interest.How will these transactions be reported in the statement of cash flows?  Oprerating Section  Investing Section  Financing Section  a. $100 use $900 use $50,000 source  b. $0$0$50,000 source /$1,000 use  c. $100 use $0$50,000 source /$900 use  d. $0$0$50,000 source /$900 use \begin{array} { | l | l | l | l | } \hline & \text { Oprerating Section } & \text { Investing Section } & \text { Financing Section } \\\hline \text { a. } & \$ 100 \text { use } & \$ 900 \text { use } & \$ 50,000 \text { source } \\\hline \text { b. } & \$ 0 & \$ 0 & \$ 50,000 \text { source } / \$ 1,000 \text { use } \\\hline \text { c. } & \$ 100 \text { use } & \$ 0 & \$ 50,000 \text { source }/ \$ 900 \text { use } \\\hline \text { d. } & \$ 0 & \$ 0 & \$ 50,000 \text { source }/ \$ 900 \text { use } \\\hline\end{array}

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