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

It is a source of cash, and will be shown in the investing section as an addition.

It is a source of cash and will be shown in the financing section as an addition.

It is a use of cash, and will be shown in the investing section as a subtraction.

It is a use of cash, and will be shown in the financing section as a subtraction