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Davidson Company experienced the following events during the year: 1. Issued common stock...

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Accounting

Davidson Company experienced the following events during the year:

1. Issued common stock for $30,000 cash

2. Borrowed $25,000 cash from First Bank.

3. Purchased $10,000 of treasury stock.

4. Paid $8,000 cash for dividends.

What is the effect of these transactions on Davidson Company's statement of cash flows?

a.

$37,000 cash inflow from investing activities
b.

$37,000 cash inflow from financing activities
c.

$47,000 cash inflow from financing activities and $10,000 cash outflow from investing activities
d.

$55,000 cash inflow from financing activities and $18,000 cash outflow from investing activities

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