[misanthrope87]

Hey guys. What section of Cash Flows would the proceeds from the sale of equipment be part of? Thanks!

B 2/12 87
A 11/11 90
R 8/11 86
F 5/12 88

[ledgermaven]

“purchases of capital assets are considered financing, not investing activities,” so would proceeds also be financing? Wiley page 812 of 2012, last sentence.

[misanthrope87]

I don't know. That's my question!! I'm getting confused with the governmental cash flows and for profit. In for profit, it would be part of investing activities, but I'm not sure about governmental.

B 2/12 87
A 11/11 90
R 8/11 86
F 5/12 88

[RK47]

Think about the motive of why goverment buys an asset and why firm buys an asset? That should help you

[Nbkna2c]

I say yes the proceeds would also be financing.

BEC 78
REG 84
AUD 76
FAR 83

[Anonymous]

I would look at FS in Wiley book, for example. I had about 3 question concerning NFP CF statement. I'm so glade that I look at this statement just today in the morning before the exam.

[Anonymous]

The Proceeds of Sales of Assets goes in the Cash Flows from Capital and Related Financing Section of a Governmental Statement of Cash Flow. Here is a link to the Governmental Audit of my hometown. You can see on page 26 that the first item listed under Financing is “Proceeds from the Sale of Assets”.

https://app1.lla.state.la.us/PublicReports.nsf/CB60B71A7E9D30AA8625795E006089D3/$FILE/00023D7B.pdf

[Anonymous]

ahh I need to go over this section again (Sunday & Monday:), but yes, I'm pretty sure it's part of financing section of the CF.

[misanthrope87]

@kricket

Thank you so much! Was very confused about this since Becker didn't state this explicitly.

@CPA628

Definitely. They all have different cash flows damn it!!

B 2/12 87
A 11/11 90
R 8/11 86
F 5/12 88

[Nbkna2c]

Hey misanthrope87; I'm using Gleim. Page 726 says that for proprietary funds cash flows – use “capital and related financing acivities to include all borrowings (and repayments of debt) for (a) acquiring, contrsucting, or improving capital assets; (b) acquiring and disposing of capital assets used to provide ogoods or services.”

I think there's your answer….about disposition…..it's like the government cash flow is is really quite a lot more literal…all interest and dividends and dispositions follow which ever category the assets resided in first. Unlike the FASB cash flow where a lot of this stuff turns up in either investing or opertaional. Good luck!

BEC 78
REG 84
AUD 76
FAR 83

[Author]

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