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On January 1, the long-term liability section of Cracker & Company Balance Sheet showed a balance of $800 million in long-term notes payable.  On December 31, the balance in that same account was $120 million. How should the company report the cash flow effect related to the change in this account on its Statement of Cash Flow? As a cash outflow of $680 million in the financing section As a cash outflow of $680 million in the investing section As a cash outflow of $920 million in the financing section As a cash outflow of $920 million in the investing section

On January 1, the long-term liability section of Cracker & Company Balance Sheet showed a balance of $800 million in long-term notes payable.  On December 31, the balance in that same account was $120 million. How should the company report the cash flow effect related to the change in this account on its Statement of Cash Flow? As a cash outflow of $680 million in the financing section As a cash outflow of $680 million in the investing section As a cash outflow of $920 million in the financing section As a cash outflow of $920 million in the investing section

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter6: Statement Of Cash Flows
Section: Chapter Questions
Problem 14E
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On January 1, the long-term liability section of Cracker & Company Balance Sheet showed a balance of $800 million in long-term notes payable.  On December 31, the balance in that same account was $120 million.

How should the company report the cash flow effect related to the change in this account on its Statement of Cash Flow?

  1. As a cash outflow of $680 million in the financing section
  2. As a cash outflow of $680 million in the investing section
  3. As a cash outflow of $920 million in the financing section
  4. As a cash outflow of $920 million in the investing section
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