1. give me two constraints for the Cash Flow Statement?

2. Check Example 2 and give me your opinion about the answer whether it is right or wrong and show the basis for your opinion please. please solve as fast as you can

EXAMPLE 2 Operating versus Financing Cash Flows On 31 December 2009, a company issued a 30,000 180-day note at 8 percent and used the cash received to pay for inventory and issued 110,000 long-term debt at 11 percent annually and used the cash received to pay for new equipment. Which of the following most accurately reflects the combined effect of both transactions on the company's cash flows for the year ended 31 December 2009 under IFRS? Cash flows from: A operations are unchanged. B financing increase 110,000. C operations decrease 30,000. Solution: C is correct. The payment for inventory would decrease cash flows from oper- ations. The issuance of debt (both short-term and long-term debt) is part of financing activities and would increase cash flows from financing activities by 140,000. The purchase of equipment is an investing activity. Note that the treatment under US GAAP would be the same for these transactions