Avatar Company Uses the Indirect Method to Prepare Its Statement

Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information:
• Repayments on long-term notes payable: $40,000
• New borrowing on long-term notes payable: $34,000
Which of the following statements is accurate regarding the statement of cash flows?

A) $34,000 will be shown as a positive cash flow in the investing section.
B) $40,000 will be shown as a positive cash flow in the financing section.
C) $34,000 will be shown as a positive cash flow in the financing section.
D) $40,000 will be shown as a negative cash flow in the investing section.