Which of the describes the effect of two transactions

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Problem 1: BCo takes a loan for $100 from a bank to buy a piece of equipment for $100 from a manufacturer. BCo treats the equipment as a long-term asset held for use; i.e., it did not buy the equipment with a view to reselling it. Which one of the following best describes the effect of these two transactions on the individual SECTIONS of the cash-flow statement?

a. BCo's cash-flow statement will show nothing related to these transactions because the cash received from one party has been paid to the other with no net impact on the cash flow.

b. BCo will show a financing inflow of $100 and an investing outflow of $100.

c. BCo will show a financing inflow of $100 and an operating outflow of $100.

d. BCo will show an investing inflow of $100 and an investing outflow of $100.

e. BCO will show an investing inflow of $100 and a financing outflow of $100.

Reference no: EM132965248

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