The following information for the 2018 was provided by Zapata Company who uses the indirect method to prepare its statement of cash flows: Long-term notes payable, beginning balance $90,000 Long-term notes payable, ending balance 84,000 Common stock, beginning balance 2,000 Common stock, ending balance 80,000 Retained earnings, beginning balance 74,000 Retained earnings, ending balance 113,000 Treasury stock, beginning balance 5,000 Treasury stock, ending balance 8,000 • No stock was retired. • No treasury stock was sold. • During 2018, the company repaid $40,000 of long-term notes payable. • During 2018, the company borrowed $34,000 on a new note payable. • Net income for the year was $49,000. How much was the net cash flow from financing activities? Question 19Answer a. $69,000 positive cash flow b. $59,000 positive cash flow c. $9,000 negative cash flow d. $9,000 positive cash flow
The following information for the 2018 was provided by Zapata Company who uses the indirect method to prepare its statement of
Long-term notes payable, beginning balance $90,000
Long-term notes payable, ending balance 84,000
Common stock, beginning balance 2,000
Common stock, ending balance 80,000
Retained earnings, ending balance 113,000
Treasury stock, ending balance 8,000
• No stock was retired.
• No treasury stock was sold.
• During 2018, the company repaid $40,000 of long-term notes payable.
• During 2018, the company borrowed $34,000 on a new note payable.
• Net income for the year was $49,000.
How much was the net cash flow from financing activities?
Question 19Answer
$69,000 positive cash flow
$59,000 positive cash flow
$9,000 negative cash flow
$9,000 positive cash flow
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