Question

multiple choice question

long-term notes payable was $20 million at the beginning of the year and $30 million at the end. during the year an additional $15 million was borrowed. repayments on the statement of cash flow during the year were ______.

• $(5) million under investing activities
• $(5) million under financing activities
• $25 million under investing activities
• $(35) million under financing activities
• $(35) million under investing activities
• $25 million under financing activities

Explanation:

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"concepts_used": [
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<reasoning>

Set up the notes payable roll-forward equation

Using the Statement of Cash Flows knowledge point
\[
\text{Ending Balance} = \text{Beginning Balance} + \text{New Borrowings} - \text{Repayments}
\]

Calculate the repayment amount

Using the Statement of Cash Flows knowledge point
\[

$$\begin{aligned} \$30\text{ million} &= \$20\text{ million} + \$15\text{ million} - \text{Repayments} \\ \$30\text{ million} &= \$35\text{ million} - \text{Repayments} \\ \text{Repayments} &= \$5\text{ million} \end{aligned}$$

\]

Determine cash flow classification and presentation

Using the Financing Activities knowledge point
\[

$$\begin{aligned} &\text{Classification: Financing Activities} \\ &\text{Cash Outflow Representation: } \$(5)\text{ million} \end{aligned}$$

\]
</reasoning>

<answer>
<mcq-option>\$(5) million under investing activities</mcq-option>
<mcq-correct>\$(5) million under financing activities</mcq-correct>
<mcq-option>\$25 million under investing activities</mcq-option>
<mcq-option>\$(35) million under financing activities</mcq-option>
<mcq-option>\$(35) million under investing activities</mcq-option>
<mcq-option>\$25 million under financing activities</mcq-option>
</answer>

<post_analysis>
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"subject": "Business",
"question_type": "Multiple Choice",
"knowledge_point": [
"Business",
"Accounting",
"Statement of Cash Flows"
]
}
</post_analysis>

Answer:

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"Statement of Cash Flows",
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],
"new_concepts": [],
"current_concepts": [
"Statement of Cash Flows",
"Financing Activities",
"Noncurrent Liabilities Reporting"
]
}
</pre_analysis>

<reasoning>

Set up the notes payable roll-forward equation

Using the Statement of Cash Flows knowledge point
\[
\text{Ending Balance} = \text{Beginning Balance} + \text{New Borrowings} - \text{Repayments}
\]

Calculate the repayment amount

Using the Statement of Cash Flows knowledge point
\[

$$\begin{aligned} \$30\text{ million} &= \$20\text{ million} + \$15\text{ million} - \text{Repayments} \\ \$30\text{ million} &= \$35\text{ million} - \text{Repayments} \\ \text{Repayments} &= \$5\text{ million} \end{aligned}$$

\]

Determine cash flow classification and presentation

Using the Financing Activities knowledge point
\[

$$\begin{aligned} &\text{Classification: Financing Activities} \\ &\text{Cash Outflow Representation: } \$(5)\text{ million} \end{aligned}$$

\]
</reasoning>

<answer>
<mcq-option>\$(5) million under investing activities</mcq-option>
<mcq-correct>\$(5) million under financing activities</mcq-correct>
<mcq-option>\$25 million under investing activities</mcq-option>
<mcq-option>\$(35) million under financing activities</mcq-option>
<mcq-option>\$(35) million under investing activities</mcq-option>
<mcq-option>\$25 million under financing activities</mcq-option>
</answer>

<post_analysis>
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