Lopez Corp

Lopez Corp.uses the indirect method to prepare its statement of cash flows.Refer to the following information for 2017:
1.Long-Term Notes Payable,beginning balance,$80,000
2.Long-Term Notes Payable,ending balance,$75,000
3.Common Stock,beginning balance,$3,200
4.Common Stock,ending balance,$26,000
5.Retained Earnings,beginning balance,$79,000
6.Retained Earnings,ending balance,$116,000
7.Treasury Stock,beginning balance,$5,900
8.Treasury Stock,ending balance,$10,000
9.No stock was retired.
10.No treasury stock was sold.
11.During 2016,the company repaid $37,000 of long-term notes payable.
12.During 2016,the company borrowed $42,000 on a new note payable.
13.Net income for the year was $55,000.
14.Assume all dividends declared during the year were paid.
What is the net cash flow from financing activities?

A) $18,700
B) $700
C) ($5,000)
D) $5,700

Correct Answer:

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