What will the company report on its statement of cash flows


On January 1, 2009, SK Company pays $205,000 cash for factory equipment that has an estimated useful life of 10 years and an expected residual value of $5,000. What will the company report on its statement of cash flows for the year ended December 31, 2009?

Operating activity cash outflow of $(205,000)

Operating activity cash outflow of $(20,500)

Investing activity cash outflow of $(205,000)

Financing activity cash outflow of $(205,000)

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Financial Management: What will the company report on its statement of cash flows
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