A Company Purchases Equipment for Use in Its Business Activities

A company purchases equipment for use in its business activities.Where would this transaction appear if the company prepares the statement of cash flows using the indirect method or the direct method?

A) The purchase of equipment would be presented in the non-cash investing and financing activities section under both methods.
B) The purchase of equipment would be presented in the financing activities section as a cash payment under both methods.
C) The purchase of equipment would be presented in the operating activities section as a reduction in net income under the indirect method and as a cash payment under the direct method.
D) The purchase of equipment would be presented in the investing activities section as a cash payment under both methods.