On 31 December 2009, a company issued a $20,000, 90-day note at 8 percent to pay for inventory purchased that day and issued $130,000 of long-term debt at 11 percent annually to pay for new equipment purchased that day. Using the indirect method, which of the following most accurately reflects the combined effect of both transactions on the company's statement of cash flows for the year ended 31 December 2009? Cash flow from: —

单选题 编号：2690720

1. On 31 December 2009, a company issued a $20,000, 90-day note at 8 percent to pay for inventory purchased that day and issued $130,000 of long-term debt at 11 percent annually to pay for new equipment purchased that day. Using the indirect method, which of the following most accurately reflects the combined effect of both transactions on the company's statement of cash flows for the year ended 31 December 2009? Cash flow from:

A.Operations increases $20,000
B.Financing increases $130,000
C.Operations decreases $20,000

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