The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year. It can be seen as a summary of the sources and uses of cash (sources of cash are added, uses of cash are subtracted). Please answer which of the following is true if Baldwin issues bonds:

Select: 1

	A. It is a source of cash, and will be shown in the investing section as an addition.
	B. It is a use of cash, and will be shown in the investing section as a subtraction.
C.	It is a source of cash and will be shown in the financing section as an addition.
D.	It is a use of cash, and will be shown in the financing section as a subtraction

Cash Flow Statement 2021 2020 $6,547 ($1,999) $6,488 $6,488 $0 ($1,066) $2,675 ($18,449) ($35,606) ($1,802) $45 $0 The Cash Flow Statement examines what happened in the Cash Cash Flows from Operating Activities: Account during the year. Cash injections appear as positive numbers and Net Income (Loss) cash withdrawals as negative numbers. The Cash Flow Statement is an |Depreciation excellent tool for diagnosing emergency loans. When negative cash Extraordinary gains/losses/writeoffs flows exceed positives, you are forced to seek emergency funding. For Accounts Payable example, if sales are bad and you find yourself carrying an abundance of Inventory excess inventory, the report would show the increase in inventory as a Accounts Receivable huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and force you to beg for money Net cash from operations to keep your company afloat. Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing Activities: Cash Flow Summary Dividends Paid Andrews Sales of Common Stock Purchase of Common Stock Cash from long term debt 5,000 Retirement of long term debt Change in current debt (net) Net cash from financing activities Net change in cash position Closing cash position ($8,282) ($28,396) $0 $500) $0 ($29,354) $0 ($9,000) $6,510 $14,722 ($11,300) $13,072 $20,985 $0 $0) $8,282 ($2,647) $0 ($31,543) -5,000 Operations Finance Chg. Cash Investment O Finance Operations O Chg. Cash Annual Report Page 1 Ton