High School

During the year, Next Tec Corporation had the following cash flows:

- Receipt from customers: $19,000
- Receipt from the bank for long-term borrowing: $6,300
- Payment to suppliers: $5,300
- Payment of dividends: $1,900
- Payment to workers: $2,700
- Payment for machinery: $11,000

What amount would be reported for net financing cash inflows (outflows) in the statement of cash flows?

A. $6,300
B. $3,900
C. ($11,000)
D. $4,400

Answer :

The net financing cash inflows (outflows) can be calculated as follows:

Receipt from the bank for long-term borrowing = $6,300
Payment of dividends = $1,900

Net financing cash inflows (outflows) = Receipt from the bank for long-term borrowing - Payment of dividends
= $6,300 - $1,900
= $4,400

Therefore, the amount reported for net financing cash inflows (outflows) in the statement of cash flows is $4,400. The correct answer is: $4,400.

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