Cash Flow Statement Survey Cash flows from operating activities Changes in curre

Question

Cash Flow Statement Survey Cash flows from operating activities Changes in current assets and liabilities Cash flows from investing activities Cash flows from financing activities stock Early retirement of long term debt Cash from current debt borrowing Net cash from financing activities Retained Earnings Total Liabilities & Owners Equity Variable Costs (Labor, Material, Carry) SGA (R&D;, Promo, Sales, Admin) Other (Fees, Writeoffs, TOM, Bonuses) Interest (Short term, Long term) Profit Sharing

Explanation / Answer

D) It is a source of cash and will be shown in the financing section as an addition.

Explanation: A company issues bonds to raise money. Thus with the issuance of bonds, the company has cash inflow which is shown as addition in the Cash Flow Statement. Since it is a part of company's financial objectives to raise capital, it is classified as financial activity and shown in financial section.

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