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Washington Company is preparing its statement of cash flows using the indirect method. Refer to the following portion of the comparative balance sheet: Washington Company Comparative Balance Sheet December 31, 2025 and 2024 2025 2024 Accounts Payable Accrued Liabilities Long-term Notes Payable Total Liabilities $8,000 3,000 58,000 $69,000 $5,000 1,000 64,000 $70,000 Increase/(Decrease) $3,000 2,000 (6,000) $(1,000) Additional information provided by the company includes the following: 1. During 2025, the company repaid $35,000 of long-term notes payable. 2. During 2025, the company borrowed $29,000 on a new long-term 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? O $(6,000) O $6,000 O $(64,000) O $64,000

Washington Company is preparing its statement of cash flows using the indirect method. Refer to the following portion of the comparative balance sheet: Washington Company Comparative Balance Sheet December 31, 2025 and 2024 2025 2024 Accounts Payable Accrued Liabilities Long-term Notes Payable Total Liabilities $8,000 3,000 58,000 $69,000 $5,000 1,000 64,000 $70,000 Increase/(Decrease) $3,000 2,000 (6,000) $(1,000) Additional information provided by the company includes the following: 1. During 2025, the company repaid $35,000 of long-term notes payable. 2. During 2025, the company borrowed $29,000 on a new long-term 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? O $(6,000) O $6,000 O $(64,000) O $64,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Washington Company is preparing its statement of cash flows using the indirect method. Refer to the following portion of the comparative balance sheet: Washington Company Comparative Balance Sheet December 31, 2025 and 2024 2025 2024 Accounts Payable Accrued Liabilities Long-term Notes Payable Total Liabilities $8,000 3,000 58,000 $69,000 $5,000 1,000 64,000 $70,000 $(64,000) $64,000 Increase/(Decrease) $3,000 2,000 (6,000) $(1,000) Additional information provided by the company includes the following: 1. During 2025, the company repaid $35,000 of long-term notes payable. 2. During 2025, the company borrowed $29,000 on a new long-term 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? $(6,000) $6,000
Transcribed Image Text:Washington Company is preparing its statement of cash flows using the indirect method. Refer to the following portion of the comparative balance sheet: Washington Company Comparative Balance Sheet December 31, 2025 and 2024 2025 2024 Accounts Payable Accrued Liabilities Long-term Notes Payable Total Liabilities $8,000 3,000 58,000 $69,000 $5,000 1,000 64,000 $70,000 $(64,000) $64,000 Increase/(Decrease) $3,000 2,000 (6,000) $(1,000) Additional information provided by the company includes the following: 1. During 2025, the company repaid $35,000 of long-term notes payable. 2. During 2025, the company borrowed $29,000 on a new long-term 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? $(6,000) $6,000
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