Answer:
c. Repayment of long-term borrowing to the bank.
Explanation:
The third section of the statement of cash flows shows the cash flows from financing activities. These activities are defined as ‘activities that result in changes in the size and composition of the contributed equity and borrowings of the entity.’ It measures the flow of cash between a firm and its owners and creditors. Companies often borrow money to fund their operations, acquire another company or make other major purchases. Here again for investors, the most important item is cash dividends paid.
Based on the above discussion, the following item shall be included in the financing cash flows.
c. Repayment of long-term borrowing to the bank.
