Final answer:
Cash flows from borrowing money, issuing bonds, and issuing stock are classified as financing cash flows.
Step-by-step explanation:
The classification of cash flows as either operating, investing, financing, or both depends on the nature of the cash flow.
Operating cash flows are generated from the primary activities of a business, such as sales, purchasing inventory, and paying employees. They are related to the day-to-day operations of the company.
Investing cash flows are associated with the purchase or sale of long-term assets, such as property, equipment, or investments.
Financing cash flows involve obtaining or repaying capital, such as issuing stock, taking out loans, or paying dividends to shareholders.
Based on the information provided, the cash flows of borrowing money from a bank and issuing bonds would be classified as financing cash flows. These cash flows involve obtaining financial capital to support the firm's operations and expansion plans. Issuing stock, on the other hand, would also be classified as financing cash flows because it involves selling ownership of the company to the public and raising capital through equity.
Therefore, the answer is Financing (B).