If $3100000 of bonds are issued during the year but $4960000 of old bonds are retired during the year, the statement of cash flows will show a(n)

1-net decrease in cash of $1860000.

2-increase in cash of $3100000 and a decrease in cash of $4960000.

3-net loss on retirement of bonds of $1860000.

4-net increase in cash of $1860000.