Final answer:
The sale of property is classified as an investing activity on the statement of cash flows. Borrowing and payments to lenders are financing activities, and the sale of goods is an operating activity.
Step-by-step explanation:
The question asks which item would be classified as an investing activity on the statement of cash flows. Among the options listed, the sale of property is considered an investing activity.
A statement of cash flows classifies cash transactions into three categories: operating, investing, and financing activities. Proceeds from borrowing would be considered a financing activity. Sale of goods falls under operating activities, while payment to lenders would also be classified under financing activities.
When a firm decides to access financial capital, they can choose between borrowing through banks, issuing bonds, or selling stock. Borrowing involves scheduled interest payments but allows the firm to maintain control. Selling stock entails giving up a portion of the company's ownership and being responsible to shareholders.