Lopez Corp

question 36

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,$85,000
2.Long-Term Notes Payable,ending balance,$71,000
3.Common Stock,beginning balance,$3,100
4.Common Stock,ending balance,$27,000
5.Retained Earnings,beginning balance,$76,000
6.Retained Earnings,ending balance,$120,000
7.Treasury Stock,beginning balance,$5,200
8.Treasury Stock,ending balance,$10,100
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 $51,000 on a new note payable.
13.Net income for the year was $54,000.
14.Assume all dividends declared during the year were paid.
What is the net cash flow from financing activities?

• A)$19,000
• B)$9,000
• C)($14,000)
• D)$23,000

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Definitions:

Behavioral System Balance

The state of equilibrium in an individual's behavioral responses, maintained through adaptation to environmental stimuli.

Chaotic

Characterized by apparent lack of order or predictability, often seen in complex systems that are sensitive to initial conditions.

Permeable

Allowing liquids or gases to pass through; often used metaphorically to suggest openness to ideas or influences.

Behavioral System

A framework or model used to describe and explain the patterns of behavior individuals exhibit within various environments.