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:

Tongue

A muscular organ in the mouth of most vertebrates that manipulates food for mastication and is used in the act of swallowing and articulating speech.

Gustation

The sense of taste or the act of tasting.

Audition

The sense or act of hearing.

Olfaction

The sense of smell, a chemical sense that detects airborne molecules and contributes to taste and environmental awareness.