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
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

9. Help me selecting the right answer. Thank you

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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education