On March 31, 20X1, ABC Company made its regular monthly payment of $13,000 on an oustanding loan from a bank. A portion of the payment was for accrued interest ($2,000) and the rest was to pay down principal ($11,000).

How should ABC Company classify this cash payment on the statement of cash flows?

multiple choice

• ($2,000) Investing Activities; ($11,000) Financing Activities

• ($2,000) Operating Activities; ($11,000) Financing Activities

• ($13,000) Investing Activities

• ($2,000) Operating Activities; ($11,000) Investing Activities

• ($13,000) Financing Activities

• ($13,000) Operating Activities