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Davidson Company experienced the following events during the year:
1. Issued common stock for $30,000 cash
2. Borrowed $25,000 cash from First Bank.
3. Purchased $10,000 of treasury stock.
4. Paid $8,000 cash for dividends.
What is the effect of these transactions on Davidson Company's statement of cash flows?
| | a. | $37,000 cash inflow from investing activities |
| | b. | $37,000 cash inflow from financing activities |
| | c. | $47,000 cash inflow from financing activities and $10,000 cash outflow from investing activities |
| | d. | $55,000 cash inflow from financing activities and $18,000 cash outflow from investing activities |
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