Abhijit Co. 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. Abhijit would report cash outflows from activities, as follows:

Multiple Choice

• Operating, $18,000; financing, $0.

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

• Operating, $2,000; financing, $16,000.

• Operating, $0; financing, $18,000.