On January 1st of the Current Year Bratton Manufacturing Borrowed

question 33

Multiple Choice

On January 1st of the current year Bratton Manufacturing borrowed $1,000,000 from the First National Bank.On June 30^st and December 31^st Bratton made payments of $10,000 each.How will these transactions be reported in the statement of cash flows?

• A)$1,000,000 source of cash and $20,000 use of cash,both shown in the financing section
• B)$1,000,000 source of cash in the financing section and $20,000 use of cash in the operating section as a use of cash
• C)$1,000,000 source of cash in the investing section and $20,000 use of cash in the operating section
• D)$1,000,000 source of cash and $20,000 use of cash,both shown in the investing section

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