When a company borrows $150 million during the year and also repays $120 million of debt,the company reports the $30 million net amount as excess of borrowings over repayments in the financing activities section of the statement of cash flows.

Question

Quizplus · Accepted Answer

In the financing activities section of the statement of cash flows, a company reports the gross amounts of borrowing and repayments separately, not just the net amount.

When a Company Borrows $150 Million During the Year and Also