Lopez Corp

Lopez Corp. uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2014: 1) Long-Term Notes Payable, beginning balance, $80,000
2) Long-Term Notes Payable, ending balance, $76,000
3) Common Stock, beginning balance, $3,000
4) Common Stock, ending balance, $26,000
5) Retained Earnings, beginning balance, $75,000
6) Retained Earnings, ending balance, $115,000
7) Treasury Stock, beginning balance, $6,000
8) Treasury Stock, ending balance, $10,000
9) No stock was retired.
10) No treasury stock was sold.
11) During 2014, the company repaid $36,000 of Long-Term Notes Payable.
12) During 2014, the company borrowed $32,000 on a new Note Payable.
13) Net income for the year was $49,000.
"14) Assume all dividends declared during the year were paid.
How much was the net cash flow from financing activities?"

A) $2,000
B) $10,000
C) $(6,000)
D) $6,000

Correct Answer:

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