High School

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

- Receipt from customers: $16,000
- Receipt from the bank for long-term borrowing: $6,500
- Payment to suppliers: $6,000
- Payment of dividends: $1,200
- Payment to workers: $2,600
- Payment for machinery: $9,000

What amount would be reported for financing cash flows on the Statement of Cash Flows?

A. $5,100

B. $7,300

C. $6,100

D. ($9,000)

Answer :

Final answer:

The financing cash flows on the Statement of Cash Flows would include the receipt from the bank for long-term borrowing and the payment of dividends, and the total would be $5,300. Therefore, the correct option is A

Explanation:

The financing cash flows on the Statement of Cash Flows would include the receipt from the bank for long-term borrowing and the payment of dividends. In this case, the receipt from the bank for long-term borrowing is $6,500 and the payment of dividends is $1,200. So, the total financing cash flows would be $6,500 - $1,200 = $5,300. Therefore, the correct answer is a. $5,100.

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