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

question 98

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.

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