Question: Steiner Corp. purchases a new machine for $ 1 2 0 , 0 0 0 . The company makes a $ 2 0 , 0

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 .

Financing cash outflow is $

100, 000 .

Investing cash outflow is $

120, 000 .

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