DETERMINING CASH FLOWS FROM FINANCING ACTIVITIES Solomon Construction Company reported the following amount on its balance sheet at the end of 2009 and 2008 for notes payable:

12/31/2009 12/31/2008 Notes payable $180,000 $150,000 Required:

. If Solomon did not repay any notes payable during 2009, determine how much cash Solomon received from the issuance of notes payable.

. If Solomon repaid $60,000 of notes payable during 2009, determine what amounts Solomon would report in the financing activities section of the statement of cash flows.

Exercise