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:

 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, $18,000; financing, $0.


Operating, $12,000; financing, $6,000.



Operating, $0; financing, $18,000.

 

Answer

 Operating, $12,000; financing, $6,000.

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