Many of Granada Corporation's Convertible Bond Holders Have Converted Their

Many of Granada Corporation's convertible bond holders have converted their bonds into stock during the year under examination. The independent auditor should review Granada Corporation's statement of cash flows to ascertain that it shows:

A) only cash used to reduce convertible debt.
B) only cash provided by issuance of stock.
C) cash provided by the issuance of stock and used to reduce convertible debt.
D) nothing relating to the conversion because it does not affect cash.