Purchase equipment to be used in operations.

Consider the following cash flow items:

Pay amount owed to bank for previous borrowing.

Pay utility costs.

Purchase equipment to be used in operations.

Purchase office supplies.

Purchase one year of rent in advance.

Pay workers' salaries.

Pay for research and development costs.

Pay taxes to the IRS.

Sell common stock to investors.

How many of these cash flow items involve financing activities?

A) Zero.

B) One.

C) Two.

D) Three.

Answer: Two.