B. This answer results from including interest paid on debt and dividends paid to shareholders in the calculation of cash flows from financing activities. However, interest on debt is classified as a cash flow from operating activities, not as a cash flow from financing activities. And although it is correct to classify dividends paid to shareholders as a financing activity, that is not the only financing activity among those given.

C. This answer results from including all of the cash flows given in the calculation of cash flows from financing activities. However, interest on debt is classified as a cash flow from operating activities, not as a cash flow from financing activities.

D. Dividends paid ($200,000) and repurchase of the company's stock as treasury stock ($400,000) are transactions that should be classified as cash flows from financing activities on the company's cash flow statement. Interest on debt is classified as a cash flow from operating activities, not financing activities.