each of the folown act ons, indcate whether the cash low is an operatrg, nves tr
ID: 2342054 • Letter: E
Question
each of the folown act ons, indcate whether the cash low is an operatrg, nves trg. o na eng act ny or purposes of preparing a state ne t of casi, ow. in addion, bspecte wen espect to whether activity leads to an inflow of cash or an outfiow of cash from the company's perspective A company issues common stock for cash A company collects cash from a sale of inventory A company sells land previously used in its business for cash A company pays back the principal on a bank loan evidenced by a promissory note Choose A company pays for supplies it previously purchased on account A company makesa cash purchase of land to be used in its business Choose Choose Choose Choose Choose.Explanation / Answer
A company issuing common stock for cash: Financing Activity - Inflow of cash
A Company collects cash from a sale of inventory: Operating Activity - Inflow of cash
A Company Sells Land previously used in its business for cash: Investing Activity - Inflow of cash
A company pays back the principal on a bank loan evidenced by a promissory note. Financing Activity - outflow of cash
A company pays for supplies it previously purchased on account: Operating Activity - outflow of cash
A Company makes a cash purchase of land to be used in the business: Investing Activity - Outflow of cash
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