During the year, Next Tec Corp. had the following cash flows: receipt from customers, $10,000; receipt from the bank for long-term borrowing, $6,000; payment to suppliers, $5,000; payment of dividends, $1,000, payment to workers, $2,000; and payment for machinery, $8,000. What amount would be reported for investing cash flows on the Statement of Cash Flows?
A) $5,000.
B) $2,000.
C) $6,000.
D) ($8,000).

Question

During the year, Next Tec Corp. had the following cash flows: receipt from customers, $10,000; receipt from the bank for long-term borrowing, $6,000; payment to suppliers, $5,000; payment of dividends, $1,000, payment to workers, $2,000; and payment for machinery, $8,000. What amount would be reported for investing cash flows on the Statement of Cash Flows?
A)	$5,000.
B)	$2,000.
C)	$6,000.
D)	($8,000).

Quizplus · Accepted Answer

Investing cash flows include purchases and sales of long-term assets, such as machinery. In this case, the payment for machinery is the only relevant investing cash flow, which is $8,000. The other transactions are operating or financing cash flows.

During the Year, Next Tec Corp