Lopez Corp

question 149

Multiple Choice

Lopez Corp.uses the indirect method to prepare its statement of cash flows.Refer to the following information for 2017:
1.Long-Term Notes Payable,beginning balance,$80,000
2.Long-Term Notes Payable,ending balance,$75,000
3.Common Stock,beginning balance,$3,200
4.Common Stock,ending balance,$26,000
5.Retained Earnings,beginning balance,$79,000
6.Retained Earnings,ending balance,$116,000
7.Treasury Stock,beginning balance,$5,900
8.Treasury Stock,ending balance,$10,000
9.No stock was retired.
10.No treasury stock was sold.
11.During 2016,the company repaid $37,000 of long-term notes payable.
12.During 2016,the company borrowed $42,000 on a new note payable.
13.Net income for the year was $55,000.
14.Assume all dividends declared during the year were paid.
What is the net cash flow from financing activities?

• A)$18,700
• B)$700
• C)($5,000)
• D)$5,700

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Definitions:

Pacinian Corpuscles

Sensory receptors that detect mechanical changes and vibrations, contributing to the sensation of touch and pressure.

Ruffini End Organs

Sensory receptors within the skin that respond to stretch and twisting, contributing to the sense of body position and touch.

Merkel Disks

Specialized nerve endings in the skin that respond to light touch, contributing to the sensation of texture and pressure.

Meissner Corpuscles

Special nerve cells located in the skin that detect sensations of gentle touch.