On January 1, the long-term liability section of Cracker & Company Balance Sheet showed a balance of $800 million in long-term notes payable. On December 31, the balance in that same account was $120 million. How should the company report the cash flow effect related to the change in this account on its Statement of Cash Flow? As a cash outflow of $680 million in the financing section As a cash outflow of $680 million in the investing section As a cash outflow of $920 million in the financing section As a cash outflow of $920 million in the investing section
On January 1, the long-term liability section of Cracker & Company Balance Sheet showed a balance of $800 million in long-term notes payable. On December 31, the balance in that same account was $120 million. How should the company report the cash flow effect related to the change in this account on its Statement of Cash Flow? As a cash outflow of $680 million in the financing section As a cash outflow of $680 million in the investing section As a cash outflow of $920 million in the financing section As a cash outflow of $920 million in the investing section
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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On January 1, the long-term liability section of Cracker & Company Balance Sheet showed a balance of $800 million in long-term notes payable. On December 31, the balance in that same account was $120 million.
How should the company report the cash flow effect related to the change in this account on its Statement of Cash Flow?
- As a
cash outflow of $680 million in the financing section - As a cash outflow of $680 million in the investing section
- As a cash outflow of $920 million in the financing section
- As a cash outflow of $920 million in the investing section
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