Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following sections of the comparative balance sheet:

\begin{array} { | l | r | r | r | } \hline &{ \mathbf { 2 0 1 4 } } & { \mathbf { 2 0 1 3 } } & { \text { Increase/decrease } } \\\hline \text { Accounts payable } & \$ 4,000 & \$ 6,000 & \$ ( 2,000 ) \\\hline \text { Accrued liabilities } & 2,000 & 1,000 & 1,000 \\\hline \text { Long-term notes payable } & 84,000 & 90,000 & ( 6,000 ) \\\hline \text { Total liabilities } & \$ 90,000 & \$ 97,000 & \$ ( 7,000 ) \\\hline & & &\\\hline \text { Common stock } & 30,000 & 2,000 & 28,000 \\\hline\text { Retained earnings } & 113,000 & 74,000 & 39,000 \\\hline \text { Treasury stock } & (8,000 )& (5,000) & (3,000) \\\hline \text { Total equity } & \$ 135,000 & \$ 71,000 & \$ 64,000\\\hline\\\hline\text { Total liabilities and equity }&\$225,000&\$168,000&\$57,000\\\hline\end{array}

Additional information:
• No stock was retired.
• No treasury stock was sold.
• During 2014, the company repaid $40,000 of long-term notes payable.
• During 2014, the company borrowed $34,000 on a new note payable.
• Net income for the year was $49,000.
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Please prepare the financing section of the statement of cash flows using the following format:

\begin{array}{|l|l|l|}\hline\text { Financing activities: } &\quad\quad&\quad\quad \\\hline & \\\hline & \\\hline & \\\hline & \\\hline & \\\hline \text { Net cash from financing activities } &\\\hline\end{array}

Which of the Following Describes the Operating Activities as Shown

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