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

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Definitions:

Middle Passage

The sea voyage that transported enslaved Africans across the Atlantic Ocean to the Americas as part of the transatlantic slave trade.

Ship Conditions

Refers to the state and quality of living or transportation conditions aboard sea vessels, often historically associated with the spread of disease and poor treatment of passengers.

Bonding Factor

An element or condition that causes individuals or groups to identify with one another, creating a sense of solidarity and cohesion.