Question

braden and sons, inc. borrowed $700,000 cash from trenton savings and loan last year. in addition, the company repaid a $450,000 note payable to first national bank. how should these transactions be listed in the statement of cash flows?

Answer 1

Transactions must be recorded separately inside this debt or equity portion as both a drop to income of $450,000 as well as a rise of $700,000.

The accounting equation for a business must show steady income through operational operations.

These variations on obligations, investors' capital, other tangible resources may be used to reflect about the difference on income.

A firm's first stage of development is prone to experience operational and investment income stream. retained earnings through funding that is profitable.

1)The quantity of money that exists for usage in free liquidity 

2)pay off existing debt

3)By engaging in further investment activities, grow the company.

4)increase the company's cash position

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