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- True or false, the financing activities section of the statement of cash flows reflects the cash flows that affect current assets and liabilities? True or false, buying property, plant and equipment would be considered a cash outflow from financing? True or false, the financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts? True or false, suppose Auga Company Ltd just started business and was looking for additional capital in order to purchase a property to build their headquarters. If they found an investor who was willing to sell them land worth $500,000 in exchange for stock in the company, would this transaction be shown in the investing activities section of the statement of cash flows?True or false, suppose Auga Company Ltd just started business and was looking for additional capital in order to purchase a property to build their headquarters. If they found an investor who was willing to sell them land worth $500,000 in exchange for stock in the company, would this transaction be shown in the investing activities section of the statement of cash flows? True or false, buying property, plant and equipment would be considered a cash outflow from financing? True or false, the financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts?Answer TRUE or False to the following statements/questions: D) The financing activities section of the statement of cash flows reflects the cash flows that affect current assets and liabilities? E) Buying property, plant and equipment would be considered a cash outflow from financing? F) The financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts? G) Suppose Auga Company Ltd just started business and was looking for additional capital in order to purchase a property to build their headquarters. If they found an investor who was willing to sell them land worth $500,000 in exchange for stock in the company, would this transaction be shown in the investing activities section of the statement of cash flows?
- True or false, suppose Auga Company Ltd just started business and was looking for additional capital in order to purchase a property to build their headquarters. If they found an investor who was willing to sell them land worth $500,000 in exchange for stock in the company, would this transaction be shown in the investing activities section of the statement of cash flows?True or false, the financing activities section of the statement of cash flows reflects the cash flows that affect current assets and liabilities? True or false, buying property, plant and equipment would be considered a cash outflow from financing? True or false, the financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts?D. True or false, the financing activities section of the statement of cash flows reflects the cash flows that affect current assets and liabilities? E. True or false, buying property, plant and equipment would be considered a cash outflow from financing? F. True or false, the financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts?
- Answer TRUE or False to the following statements/questions: A) Does the statement of cash flows explains the difference between net income and the change in the cash balance? B) Investors and management use the statement of cash flows to evaluate a firm's profitability? C) True or false, the financing activities section of the statement of cash flows includes paying dividends and paying off loans? D) The financing activities section of the statement of cash flows reflects the cash flows that affect current assets and liabilities? E) Buying property, plant and equipment would be considered a cash outflow from financing? F) The financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts? G) Suppose Auga Company Ltd just started business and was looking for additional capital in order to purchase a property to build their headquarters. If they found an investor who was willing to sell them land worth $500,000 in…Which of the following statements is false? (You may select more than one answer.)a. Purchasing a new manufacturing plant is classified as an investing activity.b. Paying off accounts payable balances is classified as a financing activity.c. Dividend payments are classified as a financing activity.d. Either the direct or the indirect method can be used to calculate the net cash provided by financing activities.Analysts use the statement of cash flows to measure: Group of answer choices A)The ability of a company to repay loans. b)The ability of a company to expand by investing in new equipment. c)The amount of excess cash generated by operations. d)All of the above e)None of the above
- A firm's cash flow from investing activities includes: Select one: A. Cash received from the sale of a plant asset B. Cash paid to purchase marketable securities C. Cash paid for a merger transaction D. Cash paid to purchase land E. All of the above1. In accounting, we usually use historical cost (i.e. original price) on the balance sheet. However, for some debt/equity investments, we adjust to fair market value. Explain to me why some debt/equity investments get adjusted to fair market value while other investments do not. 2. Your Statement of Cash Flows shows a negative cash flow from investing activities (primarily from a significant investment in equipment this year) and a positive cash flow from financing activities (primarily due to both issuing new common stock and taking out a note payable to fund your equipment purchase). Your CEO has asked you to give one potential positive and one potential negative explanation for the investing and financing cash flows. You should have 4 statements total (Investing - 1 positive explanation, 1 negative explanation; Financing - 1 positive, 1 negative). E.g. "The negative cash flow from investing could be a positive thing because the equipment we bought has a Buffalo Bills logo, which…Based on the information given in the cashflow statement, answer the following questions: (a) What does the cashflow from operating activities section tell you about your firm? (b) What does ‘cash from investing activities’ section indicate about the financial health of your firm? (c) Does your company rely on outsiders for its financing? If so, is the company following a particular capital structure theory when deciding on its financing? Your answer should not only cover the numerical details of the cashflow statement but should also provide an in-depth discussion of your observations on various parts of the cashflow statement.