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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:

Operating, $2,000; financing, $16,000.
Operating, $0; financing, $18,000.
Operating, $12,000; financing, $6,000.
Operating, $18,000; financing, $0.

User Mystic
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1 Answer

4 votes

Answer: B

Explanation: Operating $0; Financing $18,000.00

This is because all the listed expenses are related to the financing arm of the business.

User GHC
by
7.7k points
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