King’s Table operates buffet-style restaurants throughout the United States. The company recently pursued a strategy of remodeling and expansion, using cash from operating activities and bank borrowings. REQUIRED:

a. In which section of the statement of cash flows (operating, investing, or financing) would the following items appear? (1) Cash borrowed from a bank, (2) Cash paid for remodel¬ ing, (3) Cash paid to build a new restaurant

b. If the company had issued stock specifically to raise cash for expansion projects, in which section ofthe statement of cash flows would the cash proceeds from the sale of stock appear?

c. In which sections of the statement of cash flows would interest paid on the bank borrow¬ ings and dividends paid to the stockholders appear? Since interest represents a return to debt capital providers, why is it not disclosed in the same section as dividends, which rep¬ resents a return to equity capital providers?