Washington Company Is Preparing Its Statement of Cash Flows Using

question 163

Multiple Choice

Washington Company is preparing its statement of cash flows using the indirect method.Refer to the following portion of the comparative balance sheet: $\begin{array}{c}\text {Washington Company}\\\text { Comparative Balance Sheet}\\\text { December 31,2019 and 2018}\\\begin{array}{|l|r|r|r|}\hline&2018 & 2017 & \text { Increase/(Decrease) }\\\hline\text { Accounts Payable } & \$ 9000 & \$ 5000 & \$(4000) \\\hline \text { Accrued Liabilities } & 3000 & 1400 & 1600 \\\hline \text { Long-term Notes Payable } & 57,000 & 68,000 & (11,000 \\\hline \text { Total Liabilities } & \$ 69,000 & \$ 74,40 & \$(5400) \\\hline\end{array}\end{array}$ Additional information provided by the company includes the following:
1) During 2019,the company repaid $38,000 of long-term notes payable.
2) During 2019,the company borrowed $27,000 on a new long-term note payable.
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) $(11,000)
• B) $11,000
• C) $65,000
• D) $(65,000)

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Definitions:

Leading Cause

A leading cause refers to the primary or most significant factor contributing to a result or outcome, often used in the context of health to describe the top illness or condition resulting in morbidity or mortality.

Disease

A condition that negatively affects the structure or function of part or all of an organism, and that is not due to any external injury.

Sudden Infant Death Syndrome (SIDS)

The unexplained death of a seemingly healthy baby.

Unexplained Death

Refers to a death that occurs without an obvious or immediately identifiable cause, often leading to further investigation.