FAR Audio – Statement of Cash Flows

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  • January 19, 2015 at 6:33 pm #191500
    Joshua J Ramsey
    Member

    NINJA Question –

    I just purchased the Ninja audio yesterday to supplement Becker. Around 1:40 of the Statement of Cash Flows section it states that tax payments are investing activities. Just checking, but I believe they are supposed to be in the operating section.

    Found this online as well:

    SFAS 95, Statement of Cash Flows, classifies income tax payments as operating outflows in the cash flow statement, even though some income tax payments relate to gains and losses on investing and financing activities, such as gains and losses on plant asset disposals and early debt extinguishments.

    Did I just hear him wrong, or is the information in the lecture incorrect?

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