For each of the items, indicate the type of business activity–operating, investing, or financing. Type of Activity 1. Purchase of goods for resale Operating 2. Issue of common shares 3. Sale of equipment that the company has finished using 4. Receipt of bank loan 5. Purchase of long-term investment 6. Purchase of equipment
For each of the items, indicate the type of business activity–operating, investing, or financing. Type of Activity 1. Purchase of goods for resale Operating 2. Issue of common shares 3. Sale of equipment that the company has finished using 4. Receipt of bank loan 5. Purchase of long-term investment 6. Purchase of equipment
For each of the items, indicate the type of business activity–operating, investing, or financing. Type of Activity 1. Purchase of goods for resale Operating 2. Issue of common shares 3. Sale of equipment that the company has finished using 4. Receipt of bank loan 5. Purchase of long-term investment 6. Purchase of equipment
For each of the items indicate type of activity as per cash flows:
Transcribed Image Text:For each of the items, indicate the type of business activity–operating, investing, or financing.
Type of Activity
1. Purchase of goods for resale
Operating
2. Issue of common shares
3. Sale of equipment that the company has finished using
4. Receipt of bank loan
5. Purchase of long-term investment
6. Purchase of equipment
Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).
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