Tritan Company Is Preparing Its Statement of Cash Flows Using

question 137

Multiple Choice

Tritan Company is preparing its statement of cash flows using the indirect method.Refer to the following portion of the comparative balance sheet:

Additional information provided by the company includes the following:
1.During 2016,the company repaid $35,000 of long-term notes payable.
2.During 2016,the company borrowed $23,000 on a new 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)$(12,000)
• B)$12,000
• C)$58,000
• D)$(58,000)

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Definitions:

Minerals

Naturally occurring, inorganic substances with a definite chemical composition and crystalline structure.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since its acquisition, reflecting its use and wear over time.

Initial Cost

The first financial outlay required to acquire an asset or start a project, including all necessary expenses to make it operational.

Gain Or Loss

A financial result that occurs when the selling price of an asset differs from its cost or adjusted basis.