## Cash Flow from Investing Activities - Educational Overview### Net Cash Provided by (Used for) Operating ActivitiesNet Cash Provided by (Used for) Operating Activities represents the cash inflows and outflows from a company's core business operations. This section of the cash flow statement is crucial for understanding the liquidity and long-term solvency of a company.### Cash Flows from Investing Activities:Investing activities primarily involve changes in the investments and capital expenditures of a company. Here, you would record transactions such as the purchase and sale of physical assets, investments in securities, or acquisitions of other businesses.1. **Cash Payment for Acquisition of Plant Assets** - This line item represents cash outflows for purchasing property, plant, and equipment (PP&E). These expenditures are considered capital investments that are necessary for maintaining or expanding productive capacity. However, they represent a use of cash that might limit liquidity in the short term.### Net Cash Provided by (Used for) Investing ActivitiesThis field shows the aggregate of all cash inflows and outflows from investing activities. A positive number indicates that more cash was brought in through investing activities than was spent, while a negative number indicates otherwise.### Additional Resources- **Help me solve this:** A link or button that likely directs users to resources or tools that assist with solving related problems or completing this section of the cash flow statement. - **Demodocs example:** This may link to documentation or an example that provides a practical demonstration of how to fill out or interpret the cash flow statement related to investing activities. - **Get more help:** A general help link that provides additional assistance, FAQs, or contact information for further support.This page is designed to help users comprehend and complete the section of a cash flow statement concerned with investing activities, ensuring they properly account for cash transactions related to investments and capital expenditures. ### Interface LayoutThe image shows a user interface likely designed for entering financial data. Visible is a portion of a form where users can input values specific to cash payments for the acquisition of plant assets. Additionally, links for further help and examples are present at the bottom of the screen for user assistance. ### Financial Analysis Scenario#### NarrativeOne Stop, Inc. made a series of financial decisions that impacted its financial statements for the year ending December 31, 2024. These decisions include the acquisition of land financed entirely through long-term notes payable, disposal of a plant asset, and various transactions involving cash payments and receipts. The implications of these decisions are reflected in the comparative balance sheet and income statement for the years 2023 and 2024.---#### Balance Sheet Breakdown (One Stop, Inc.)**Comparative Balance Sheet***(As of December 31, 2024, and 2023)***Assets:**- **Current Assets:** - **Cash:** - 2024: $26,800 - 2023: $15,100 - **Accounts Receivable:** - 2024: $20,200 - 2023: $16,500 - **Merchandise Inventory:** - 2024: $79,500 - 2023: $91,200 - **Long-term Assets:** - **Land:** - 2024: $34,700 - 2023: $7,000 - **Plant Assets:** - 2024: $118,450 - 2023: $120,000 - **Accumulated Depreciation (Plant Assets):** - 2024: $(16,950) - 2023: $(14,680)- **Total Assets:** - 2024: $269,300 - 2023: $234,300**Liabilities and Stockholders' Equity:**- **Current Liabilities:** - **Accounts Payable:** - 2024: $35,800 - 2023: $30,000 - **Accrued Liabilities:** - 2024: $28,600 - 2023: $30,700- **Long-term Liabilities:** - **Notes Payable:** - 2024: $74,000 - 2023: $105,000- **Total Liabilities:** - 2024: $138,400 - 2023: $165,700

Cash flow from investing activity accounts for the purchase of investment/property.

Answered: Decreas Net Cash Provided by (Used for)…

Decreas Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: Cash Payment for Acquisition of Plant Assets

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The purchase of a long-term asset is classified in the statement of cash flows as a(n) a. Operating activity. b. Investing activity. c. Financing activity. d. Noncash activity.
(Appendix) When preparing a schedule for the calculation of cash generated from operating activities under the direct method, an increase in Depreciation Expense is a.subtracted from operating expenses. b.subtracted from net income. c.added to net income. d.added to operating expenses.
18. When using the indirect method to prepare the operating section of a statement of cash flows, which of the following is deducted from net income to compute cash provided by/used by operating activities? Decrease in accounts receivable. Gain on sale of land. Amortization of patent. All of these are deducted from net income to arrive at cash flow from operating activities.
Which of the following represents an investing activity in the statement of cash flows? a) Sale of plant assets at a loss b) Depreciation of plant assets c) Stock dividend d) Purchase of inventory
Net Cash Provided by Operating Activities Changes in various accounts and gains and losses on the sale of assets during the year for Argon Company are given below: Required: Prepare an answer sheet using the following column headings: For each item, place an X in the Add or Subtract column to indicate whether the dollar amount should be added to or subtracted from net income under the indirect method when computing the net cash provided by operating activities for the year.
Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in a. the Cash flows from financing activities section b. a separate schedule c. the Cash flows from investing activities section d. the Cash flows from operating activities section
about the cash flow problem, confusing.
Identify the cash flow activity involve when an entity sold equipment at book value Options: • Not part of cashflow • Investing • Operating • Financing
While calculating operating profit which will be added to net profit a. Profit on Sale of Asset b. Increase in General Reserves c. Interest received d. Refund of Tax
Decrease in Accrued Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: Cash Payment for Acquisition of Plant Assets Net Cash Provided by (Used for) Investing Activities Help me solve this Demodocs example esc Get more help -
Which of the following will be reflected in the "Cash flows from operating activities" of a Statement of Cash Flows? A) Adjustment for depreciation B) Purchase of equipment C) Increase or decrease in loans D) Purchase of inventory
Which of the following statements is true when computing the net cash provided by (used in) operating activities using the Indirect method? Multiple Cholce If the property, plant, and equlpment balance Increases during the perlod, the amount of the Increase is added to net Income. If the prepald expenses balance Increases during the perlod, the amount of the Increase is added to net Income. If the property, plant, and equipment balance Increases during the perlod, the amount of the Increase is subtracted from net Income. If the prepald expenses balance Increases during the perlod, the amount of the Increase is subtracted from net Income.