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If $2,500,000 of new notes payable are issued for cash during the year and $4,000,000 of notes payable are paid during the year, how should

If $2,500,000 of new notes payable are issued for cash during the year and $4,000,000 of notes payable are paid during the year, how should this be reported in the statement of cash flows?

A.

Cash inflow of $2,500,000 and a cash outflow of $4,000,000 in the financing activities section.

B.

Net cash outflow of $1,500,000 in the financing activities section.

C.

Cash inflow of $2,500,000 and a cash outflow of $4,000,000 in the investing activities section.

D.

Net cash outflow of $1,500,000 in the investing activities section.

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