Arrow Printers Paid $2,000 Interest on Short-Term Notes Payable, $10,000

question 86

Multiple Choice

Arrow Printers paid $2,000 interest on short-term notes payable, $10,000 interest on long-term bonds, and $6,000 in dividends on its common stock. Arrow would report cash outflows from activities, as follows:

• A) Operating, $2,000; financing, $16,000.
• B) Operating, $0; financing, $18,000.
• C) Operating, $12,000; financing, $6,000.
• D) Operating, $18,000; financing, $0.

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Definitions:

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