Lopez Corp

question 149

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,$80,000
2.Long-Term Notes Payable,ending balance,$75,000
3.Common Stock,beginning balance,$3,200
4.Common Stock,ending balance,$26,000
5.Retained Earnings,beginning balance,$79,000
6.Retained Earnings,ending balance,$116,000
7.Treasury Stock,beginning balance,$5,900
8.Treasury Stock,ending balance,$10,000
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 $42,000 on a new note payable.
13.Net income for the year was $55,000.
14.Assume all dividends declared during the year were paid.
What is the net cash flow from financing activities?

• A)$18,700
• B)$700
• C)($5,000)
• D)$5,700

---

Definitions:

Consciousness

The state or characteristic of being conscious of an external entity or an internal aspect of oneself.

Basic Elements

Fundamental components or constituents of a larger system, theory, or substance.

Cognitive Psychology

The study of mental processes such as "attention, language use, memory, perception, problem solving, creativity, and thinking."

Mental Processes

Internal cognitive operations that underlie behaviors and perceptions, including thinking, memory, and problem-solving.