During the year, we made a payment of long-term notes payable of $45,000 and borrowed $20,000 on a long-term note payable. Which of the following is correct for our statement of cash flows? A. Net cash used for financing activities is ($25,000).
B. Net cash provided by investing activities is $25,000.
C. Net cash provided by financing activities is $25,000.
D. Net cash used for financing activities is ($45,000).

A. Net cash used for financing activities is ($25,000)

Explanation:

Borrowing and repayment of note payable are a financing activity recognized under Cash flow

Borrowed note payable                      $20,000 (Inflow)

Less : Repayment of Note payable    ($45,000) (outflow)

Net Inflow of cash                               ($25,000)

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