Denver Company prepares its statement of cash flows using the direct method and engaged in the following transactions during 2010:1.Denver retired bonds payable by issuing common stock.2.Denver collected on a long-term note receivable.3.Denver issued a stock dividend.4.Denver recorded depreciation on fixed assets. 5.Denver paid interest on long-term debt.Which of these transactions or parts of these transactions would be included in the financing activity section of the statement of cash flows?

a. Transaction 1

b. Transaction 3

c. Transactions 1 & 3

d. None of these transactions would be found in the financing activity section.