[Jacqueline]

Hi I have a question about the cash flow statement.

If company acquire an equipment for 30,000 cash and 70,000 note payable. Would 30,000 in investing activity and 70,000 in financing activity?

Thanks!

[Tim]

100000 cash outflow from investing, 70000 cash inflow from financing

[Anonymous]

JE:
DR: Equipment 100,000
CR: Cash 30,000
CR: NP 70,000

$30,000 Investing Cash Outflow
$70,000 Included in the Supplemental Schedule of Noncash Investing Activities

[SchruteBeet]

Agree with @Amor. You haven't paid the 70K with cash so it will go under the supplemental schedule and only the 30K will make it to the cash flow from investing section.

[Anonymous]

Thanks ScruteBeet.
Oppps, my mistake.
NP of $70K is a Noncash Financing (NOT Investing) activity included in Supplemental Schedule

[Tim]

@Amor

Makes sense, my bad.

[Jacqueline]

thanks all make sense

[Author]

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