Olsen Company sells paper products to restaurants and stores across the country. Recently Olsen purchased a new machine for $100,000 by paying cash of $20,000 and signing a note payable for the remainder. How is this transaction reported on the statement of cash flows?

Select one:

a. Financing activity outflow of $100,000

b. Financing activity outflow of $20,000

c. Operating activity inflow of $20,000

d. Investing activity outflow of $100,000

e. Investing activity outflow of $20,000