the purchase of equipment is a cash from activities, whereas the sale of land is a cash from activities.

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05-12-2022
Business

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the purchase of equipment is a cash from activities, whereas the sale of land is a cash from activities.

Sagot :

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Parrain Parrain · Answer 1 · 2022-12-12T12:15:43-05:00

The purchase of equipment is a cash from Investing activities, whereas the sale of land is a cash from Investing activities.

What are investing activities in the Cash Flow Statement ?

The portion of a company's cash flow statement titled Cash Flow from Investing Activities shows how much money was spent on (or profit was made from) making investments during a specific period of time. Purchases of long-term assets (including real estate, machinery, and equipment), the purchase of other companies, and investments in marketable securities are all examples of investing activities (stocks and bonds).

Growth and capital are crucial components of investing activity. A modification to the balance sheet's major line item, property, plant, and equipment (PPE), is seen as an investment activity. Investors and analysts can find the sources and uses of funds in the investment section of the cash flow statement when they want to see how much a company spends on PPE.

This is why the purchase of equipment and the sale of land will both fall under cash that is generated or spent from investing activities.

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Sagot :

What are investing activities in the Cash Flow Statement ?

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