Arkansas Company Is Preparing Its Statement of Cash Flows Using

question 95

Multiple Choice

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 $60,000
2) New borrowing on Long-term Notes Payable $23,000
Which of the following statements is correct?

• A) Net cash used for financing activities is $(37,000).
• B) Net cash used for investing activities will is $60,000.
• C) Net cash provided by financing activities is $37,000.
• D) Net cash provided by investing activities is $37,000.

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Definitions:

Price Inelastic

A characteristic of a good or service whose demand does not significantly change when its price changes.

Agricultural Products

Goods derived from farming and the cultivation of soil, including crops and livestock.

Agricultural Industry

The sector of the economy focused on the production, processing, and distribution of food, fiber, and related products.

Farm Products

Items derived from agriculture, including crops and livestock.