During the current year, a business borrowed $60,000 cash from its bank to finance the purchase of equipment, repaid principal of $50,000 on existing loans with the bank, and paid $6,000 interest on all loans outstanding during the year. On the statement of cash flows, the entry or entries that will appear in the financing activities will include a(n). O increase in cash of $10,000. O decrease in cash of $50,000, and an increase of $60,000. O decrease in cash of $56,000, and an increase of $60,000. decrease in cash of $60,000, and an increase of $50,000.
During the current year, a business borrowed $60,000 cash from its bank to finance the purchase of equipment, repaid principal of $50,000 on existing loans with the bank, and paid $6,000 interest on all loans outstanding during the year. On the statement of cash flows, the entry or entries that will appear in the financing activities will include a(n). O increase in cash of $10,000. O decrease in cash of $50,000, and an increase of $60,000. O decrease in cash of $56,000, and an increase of $60,000. decrease in cash of $60,000, and an increase of $50,000.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter12A: The Statement Of Cash Flows
Section: Chapter Questions
Problem 2P: The financial statements for Romeo and Company follow. Assume that the additional investment and the...
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During the current year, a business borrowed $60,000 cash from its bank to finance the purchase of equipment, repaid principal of $50,000 on existing loans with the bank, and paid $6,000 interest on all loans outstanding during the year. On the statement of cash flows, the entry or entries that will appear in the financing activities will include a(n). O increase in cash of $10,000. O decrease in cash of $50,000, and an increase of $60,000. O decrease in cash of $56,000, and an increase of $60,000. decrease in cash of $60,000, and an increase of $50,000.
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