Respuesta :
Answer:
$68,000
Explanation:
The long-term note payable is a debt that is formally established through a written agreement. An example of long-term note payable is a bank loan.
When the principal and the interests of a long-term note are paid, they represent Cash outflows from the business and are recorded in the Cashflow Statement. However, their treatments are different. Another way to put it is that they bring a reduction in the cash of the organisation.
The $68,000 principal amount paid is an outflow from the company that is recorded in the financing activity section of the Cash Flow Statement
The Interest of $5,440 is also an outflow from the business but it is reported in the operating activity section of the Cash Flow Statement. The reason for its report is that it is actually reported in the Organisation's Statement of Income as an expense for the year. It, therefore, qualifies as an operating activity expense or outflow.
