Steiner Corp. purchases a new machine for $120,000. The company makes a $20,000 downpayment and signs a promissory note for the difference. Which of the following statements is correct regarding this transaction and the classification in a statement of cash flows?
Multiple choice question.
Investing cash outflow is $20,000.
Investing cash outflow is $120,000.
Financing cash outflow is $100,000.
