I am having question regarding the “-” or “+” on a financing activities, see question two in reading 35’s practice on EOC
Financing activities
Notes payable$(10)
Long-term financing issuances(40)
The question is to calculate FCFE, which means adding the net borrowing during the period, the answer added 50 as financing from net borrowing, i am confused, if it is negative, shouldnt it be reduction of debt thus deduct the total financing? why is negative item on notes payable and financing issuance is shown as borrowing, whats the rule here??
Financing activities
Notes payable$(10)
Long-term financing issuances(40)
The question is to calculate FCFE, which means adding the net borrowing during the period, the answer added 50 as financing from net borrowing, i am confused, if it is negative, shouldnt it be reduction of debt thus deduct the total financing? why is negative item on notes payable and financing issuance is shown as borrowing, whats the rule here??