New Age Beverage directly issued debt to purchase a new bottling plant. What will the company do in this situation when it is time to prepare the statement of cash flows, and why?
A) It will report this as an operating activity on the statement of cash flows because it will be included on the income statement.
B) It will not need to consider this when preparing the statement of cash flows because this does not result in cash flow.
C) It will attach a separate note to the statement of cash flows because this is a significant noncash activity and it is important but does not result in a cash flow.
D) It will report this as an investing activity on the statement of cash flows because the purchase of a new bottling plant is a significant investment.