Ms. Smith, owner of Smith Dental Supply Company, and has been in business for one year. She applied for a $150,000 loan from her bank.

Assume she is successful in getting the loan. How will this loan affect her statement of cash flows.

• $100,000 for equipment.
• $ 50,000 for expenses and bills.

Assume she is successful in getting $150,000 through issuance of stock. How will this transaction affect her statement of cash flows

• $100,000 for equipment
• $ 50,000 for expenses and bills.
• Does it make a difference in the statement of cash flows if she finances through a bank loan or through issuance of stock