192k views
5 votes
In which section of Apex's statement of cash flows would you be able to determine whether the company repaid any portion of the debt during the year?

1) Operating activities
2) Investing activities
3) Financing activities
4) Profit activities

1 Answer

3 votes

Final answer:

Apex company's repayment of any debt can be found in the Financing activities section of the cash flow statement, which includes transactions related to debt, equity, and dividends. It showcases the financial capital sources such as bank loans, bonds, and stock transactions that affect a company's cash flow.

Step-by-step explanation:

To determine whether Apex company repaid any portion of debt during the year, one should look at the Financing activities section of the statement of cash flows. This section encompasses transactions involving debt, equity, and dividends. When a company repays debt, it is essentially reducing its financial liabilities, which is reflected in the financing activities. This section shows the inflows and outflows of cash associated with external financing sources, such as bank loans or corporate bonds, along with equity transactions like the issuance or repurchase of stock.

Firms can raise financial capital through various means, including early-stage investors, reinvesting profits, bank loans, or bonds, and selling stock. The decisions about which mix of these sources to use will affect the company's cash flow and is also reflected in the financing activities section of the cash flow statement.

User Felix Yan
by
7.1k points