Question

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; and payment for machinery, $11,000. what amount would be reported for net financing cash inflows (outflows) in the statement of cash flows? multiple choice $6,300 $3,900 ($11,000) $4,400

Answer 1

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.