Detailed Answer
Answer (C) is correct. Investing activities include the lending of money and the collecting of those loans; the acquisition, sale, or other disposal of debt or equity instruments; and the acquisition, sale, or other disposition of assets (excluding inventory) that are held for or used in the production of goods or services. Investing activities do not include acquiring and disposing of certain loans or other debt or equity instruments that are acquired specifically for resale. Cash outflows to lenders for interest are cash from an operating, not an investing, activity.
