During 2014, Gillespie Corporation Made a Loan of $155,000 to a Major

question 126

Multiple Choice

During 2014, Gillespie Corporation made a loan of $155,000 to a major customer. By the end of 2014 the customer had paid back $60,000 of the loan plus interest of $12,000. In the statement of cash flows for 2014, Gillespie Corporation would report:

• A) A net decrease in cash and cash equivalents of $72,000 for 2014.
• B) $72,000 net cash used in investing activities.
• C) $95,000 net cash used in investing activities, and $12,000 cash from operating activities.
• D) $155,000 net cash used in investing activities, and $72,000 net cash from financing activities.