Tritan Company is preparing its statement of cash flows using the indirect method.Refer to the following portion of the comparative balance sheet: $\begin{array}{c}
\text {Tritan Company}\
\text { Comparative Balance Sheet}\
\text { December 31,2017 and 2016}\\begin{array}{|l|r|r|r|}
\hline&2017 & 2016 & \text { Increase/(Decrease) }\
\hline \text { Accounts Payable } & \$ 7,000 & \$ 5,000 & \$ 2,000 \
\hline \text { Accrued Liabilities } & 3,500 & 1,100 & 2,400 \
\hline \text { Long-term Notes Payable } & \underline{56,00} & \underline{67,000} & \$(11,000 \
\hline \text { Total Liabilities } & \$ 66,500 & \$ 73,100 & \$(6,600) \
\hline
\end{array}\end{array}$ Additional information provided by the company includes the following:
1.During 2016,the company repaid $35,000 of long-term notes payable.
2.During 2016,the company borrowed $24,000 on a new note payable.
Based on the above information only,what amount of net cash flow would be shown in the financing section of the statement of cash flows?

Question

Quizplus · Accepted Answer

The net cash flow from financing activities is the change in total liabilities plus the issuance of new notes payable minus the repayment of long-term notes payable. In this case, total liabilities decreased by $6,600, $24,000 of new notes payable were issued, and $35,000 of long-term notes payable were repaid. Therefore, the net cash flow from financing activities is $(6,600) + 24,000 + 35,000 = $11,000.

Tritan Company Is Preparing Its Statement of Cash Flows Using