Arkansas Company is preparing its statement of cash flows using the indirect method.Refer to the following information: 1.Repayments on Long-term Notes Payable $58,000
2)New borrowing on Long-term Notes Payable $19,000
Which of the following statements is correct?
A) Net cash used for financing activities is $(39,000).
B) Net cash used for investing activities will is $58,000.
C) Net cash provided by financing activities is $39,000.
D) Net cash provided by investing activities is $39,000.

Question

Quizplus · Accepted Answer

Net cash used for financing activities is calculated by subtracting repayments on long-term notes payable ($58,000) from new borrowing on long-term notes payable ($19,000), resulting in a net cash use of $(39,000).

Arkansas Company Is Preparing Its Statement of Cash Flows Using