During the year, Next Tec Corp. had the following cash flows: receipt from customers, $14,000; receipt from the bank for long-term borrowing, $6,500; payment to suppliers, $5,200; payment of dividends; $1,700, payment to workers, $2,400; and payment for machinery, $12,500. What amount would be reported for net financing cash flows in the statement of cash flows?

The amount that will be reported for net financing cash flows in the statement of cash flows is $4,800.

Explanation:

Cash Flows from financing activities are all cash flows which is incurred for the purpose of financing the business.

For example

Determine the category of each cash flow

Receipt from customers, $14,000; Operating

Receipt from the bank for long-term borrowing, $6,500; Financing

Payment to suppliers, $5,200; Operating

Payment of dividends; $1,700, Financing

Payment to workers, $2,400; operating

Payment for machinery, $12,500. Investing

Now calculate the Financing cash flows

Receipt from the bank for long-term borrowing $6,500

Payment of dividends ( $1,700 )

Net cash flows from Financing activites $4,800

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