Bastion Corporation paid $36,500 on its mortgage loan during the year. The principal portion of the payments totaled $15,000 and the interest was $21,500. How would the $15,000 be reported on the Statement of Cash Flows?

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The payment of a mortgage loan is considered a financing activity and not an operating or investing activity. The principal portion of the payments is also considered a financing activity, as it represents a reduction in the company's long-term debt. Therefore, the $15,000 would be reported as an outflow of cash under the financing activities section of the statement of cash flows. The interest paid would also be disclosed in the financing activities section, but it would not be considered an outflow of cash as it is a non-cash expense.

Bastion Corporation Paid $36,500 on Its Mortgage Loan During the Year