A corporation paid cash to purchase treasury stock. The cash outflow associated with this purchase should be shown in which section of the statement of cash flows?

Operating activities.

Investing activities.

Financing activities.

Noncash activities.

Assuming all transactions are cash transactions

an increase in the balance in the Common Stock account suggests a cash inflow occurred.

a decrease in the Notes Payable account suggests a cash inflow occurred.

a decrease in the Retained Earnings caused by dividends suggests a cash inflow occurred.

an increase in the Treasury Stock account suggests a cash inflow occurred.