Avatar Company Uses the Indirect Method to Prepare Its Statement

Multiple Choice

Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet:
$$\begin{array} { | l | r | r | r | } \hline&2014 & 2013 & \text { Increase/decrease }\\\hline \text { Common stock } & \$ 30,000 & \$ 2,000 & \$ 28,000 \\\hline \text { Retained earnings } & 113,000 & 74,000 & 39,000 \\\hline \text { Treasury stock } & ( 8,000 & ( 5,000 ) & ( 3,000 ) \\\hline \text { Total equity } & \$ 135,000 & \$ 71,000 & \$ 64,000 \\\hline\end{array}$$

Note: Net income for the year was $49,000.
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How will dividend payments be shown on the statement of cash flows?

A) Positive $10,000 in the financing section
B) Negative $10,000 in the financing section
C) Positive $10,000 in the investing section
D) Negative $10,000 in the investing section