If $400,000 of Bonds Are Issued During the Year,but $100,000

Multiple Choice

If $400,000 of bonds are issued during the year,but $100,000 of old bonds are retired during the year,the statement of cash flows(indirect method) will show a(n) :

A) net gain on retirement of bonds of $300,000 in the financing activities section.
B) increase in cash of $400,000 in the financing activities section and a decrease in cash of $100,000 in the financing activities section.
C) net increase in cash of $300,000 in the operating activities section.
D) net decrease in cash of $300,000 in the operating activities section.