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16. Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet:

16. Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet:

2014

2013

Increase/decrease

Accounts payable

$ 4,000

$ 6,000

$(2,000)

Accrued liabilities

2,000

1,000

1,000

Long-term notes payable

84,000

90,000

(6,000)

Total liabilities

$90,000

$97,000

$(7,000)

Additional information provided:

During 2014, the company repaid $40,000 of long-term notes payable.

During 2014, the company borrowed $34,000 on a new note payable.

Based on the above information only, what amount of net cash flow would be shown in the financing section of the statement of cash flows?

A) $6,000 negative

B) $6,000 positive

C) $5,000 positive

D) $7,000 negative

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