On July 31 of the current year, Bridges Industries borrowed $50,000 from the First National Bank. On December 31, the company made its first payment of $1,000, of which $900 was applied to principal and $100 was interest. How will these transactions be reported in the statement of cash flows?
| Operating Section | Investing Section | Financing Section | |
◦
| $100 use | $900 use | $50,000 source |
◦
| $0 | $0 | $50,000 source and $900 use |
◦
| $0 | $0 | $50,000 source and $1,000 use |
◦
| $100 use | $0 | $50,000 source and $900 use |
