Statement of Cash Flows

Question 1

Sale of property, plant and equipment is in what part of cash flows?

Answer 1

Investing activities

Question 2

Investing activities include:

Answer 2

a) making and collecting loans, b) acquiring and disposing of property, plant, and equipment, and other productive assets, and c) purchases, sales, and maturities of debt and equities (excluding those acquired specifically for resale); these would include available-for-sale and held-tomaturity securities.

Question 3

Issuance of common stock to shareholders would be classified as…

Answer 3

Financing activities

Question 4

Cash flows from financing activities include issuing debt or equity.

Examples are..

Answer 4

Proceeds from issuing or payments for retiring bonds.
Issuance or re-acquisition of stock or treasury stock.
Borrowing or repaying of loan.
Dividends paid to shareholders.
Bank overdrafts which are excluded from cash.