Avatar Company Uses the Indirect Method to Prepare Its Statement

question 57

Multiple Choice

Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet: Additional information provided:
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)$6,000 negative
• B)$6,000 positive
• C)$5,000 positive
• D)$7,000 negative

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Definitions:

Rises

An increase or upward movement in a specific parameter or value, often used in financial and economic contexts.

Price Range

The difference between the highest and lowest prices in a given market during a specific period of time.

Supply

The total amount of a good or service available for purchase at any given price level in a given market.

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly changed by variations in price.