Cash flow from investing and financing

  • Creator
    Topic
  • #1739678
    Jacqueline
    Participant

    Hi I have a question about the cash flow statement.

    If company acquire an equipment for 30,000 cash and 70,000 note payable. Would 30,000 in investing activity and 70,000 in financing activity?

    Thanks!

    AUD - 80
    BEC - 83
    FAR - 70
    REG - 80
    Practice, Patience, Persistence
Viewing 6 replies - 1 through 6 (of 6 total)
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  • #1739750
    Tim
    Participant

    100000 cash outflow from investing, 70000 cash inflow from financing


    FAR - 97 (10/12/17)
    BEC - 95 (01/15/18)
    AUD - 88 (04/06/18)
    REG - 89 (11/16/18)
    #1740218
    Anonymous
    Inactive

    JE:
    DR: Equipment 100,000
    CR: Cash 30,000
    CR: NP 70,000

    $30,000 Investing Cash Outflow
    $70,000 Included in the Supplemental Schedule of Noncash Investing Activities

    #1740251
    SchruteBeet
    Participant

    Agree with @Amor. You haven't paid the 70K with cash so it will go under the supplemental schedule and only the 30K will make it to the cash flow from investing section.

    AUD - 79
    BEC - 80
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    Ethics - 97

    "If it were easy, everyone would do it."

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    #1740284
    Anonymous
    Inactive

    Thanks ScruteBeet.
    Oppps, my mistake.
    NP of $70K is a Noncash Financing (NOT Investing) activity included in Supplemental Schedule

    #1740339
    Tim
    Participant

    @Amor

    Makes sense, my bad.


    FAR - 97 (10/12/17)
    BEC - 95 (01/15/18)
    AUD - 88 (04/06/18)
    REG - 89 (11/16/18)
    #1741856
    Jacqueline
    Participant

    thanks all make sense

    AUD - 80
    BEC - 83
    FAR - 70
    REG - 80
    Practice, Patience, Persistence
Viewing 6 replies - 1 through 6 (of 6 total)
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