Washington Company is preparing its statement of cash flows using the indirect method.Refer to the following portion of the comparative balance sheet: $\begin{array}{c}
\text {Washington Company}\
\text { Comparative Balance Sheet}\
\text { December 31,2019 and 2018}\
\begin{array}{|l|r|r|r|}
\hline&2018 & 2017 & \text { Increase/(Decrease) }\
\hline\text { Accounts Payable } & \$ 9000 & \$ 5000 & \$(4000) \
\hline \text { Accrued Liabilities } & 3000 & 1400 & 1600 \
\hline \text { Long-term Notes Payable } & 57,000 & 68,000 & (11,000 \
\hline \text { Total Liabilities } & \$ 69,000 & \$ 74,40 & \$(5400)\
\hline
\end{array}\end{array}$ Additional information provided by the company includes the following:
1)During 2019,the company repaid $38,000 of long-term notes payable.
2)During 2019,the company borrowed $27,000 on a new long-term 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?
A) $(11,000)
B) $11,000
C) $65,000
D) $(65,000)

Question

Quizplus · Accepted Answer

The net cash flow in the financing section would be $(11,000), as the company repaid $38,000 (an outflow) and borrowed $27,000 (an inflow), resulting in a net outflow of $11,000.

Washington Company Is Preparing Its Statement of Cash Flows Using