On January 5, 2022 Henderson Construction Ltd. took on a $1 million bank loan to help pay for land it was planning on purchasing and construction of a new building on the land. HCL purchased land on February 7, 2022, for $560,000 cash. They tore down the existing building, sold the scrap for $75,000, and constructed a new building for $1.2 million cash. How would these transactions affect HCL's cash flows from financing activities? Select answer from the options below Cash flows from financing activities would increase by $1,075,000. Financing activity cash flows would decrease by $1,685,000. Cash flows from financing activities would decrease by $685,000. Financing activity cash flows would increase by $1 million.

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The correct answer is Cash flows from financing activities would decrease by 685000 Explanation In ... View the full answer