During the current year, Maine Salvage Company took out new loans of $11 million. In addition,...
During the current year, Maine Salvage Company took out new loans of $11 million. In addition, the company repaid $2.6 million of prior loans and paid $1.95 million of interest expense. Explain how these cash flows will appear in the company's statement of cash flows, indicating the classification and the dollar amount of each cash flow. (Enter your answers in millions rounded to 1 decimal place.)
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Homework Answers
| Cash flow | Amount | Activity | |
| New loans made | Inflow | 11.0 | Financing activity |
| Loan repaid | Outflow | 2.6 | Financing activity |
| Interest expense | Outflow |
2.0 (rounded) |
Operating activity |
Note: interest expense is 1.95 million. If 2.0 comes out incorrect, please enter 1.95
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