Question

During the year, Next Tec Corp. had the following cash flows: receipt from customers, $15,000; receipt from the bank for long-term borrowing, $6,500; payment to suppliers, $5,900; payment of dividends; $1,700, payment to workers, $2,900; and payment for machinery, $12,500. What amount would be reported for net financing cash flows in the statement of cash flows?

Answer 1

$4,800

Step-by-step explanation:

Next Tech corporation had the following cash flows

Receipt from customers= $15,000

Receipt from bank for long term borrowing= $6,500

Payment to suppliers= $5,900

Payment of dividend= $1,700

Payment to workers= $2,900

Payment for machinery= $12,500

Therefore, the amount that should be reported for the net financing cash flows in the statement of cash flow can be calculated as follows

= Receipt for bank long term borrowing-payment of dividend

= $6,500-$1,700

= $4,800

Hence the amount reported for net financing cash flows in the statement of cash flow is $4,800