There are a few cash flow activities occurred during the year of 2022 in a firm. The firm sells some goods from inventory. The firm sells some machinery to a bank and leases it back for a period of 20 years. The firm buys back 1 million shares of stock from existing shareholders. 1). Which of above activity(ies) belong to CFO, CFI or CFF? 2). Will these actions increase or decrease the firm’s cash balance consider the accounting procedure/standards? Explain why you selected these options and what assumptions you made about their accounting standards, credit policies, operating procedures, and other factors that you conside
There are a few cash flow activities occurred during the year of 2022 in a firm. The firm sells some goods from inventory. The firm sells some machinery to a bank and leases it back for a period of 20 years. The firm buys back 1 million shares of stock from existing shareholders. 1). Which of above activity(ies) belong to CFO, CFI or CFF? 2). Will these actions increase or decrease the firm’s cash balance consider the accounting procedure/standards? Explain why you selected these options and what assumptions you made about their accounting standards, credit policies, operating procedures, and other factors that you conside
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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There are a few cash flow activities occurred during the year of 2022 in a firm.
The firm sells some goods from inventory.
The firm sells some machinery to a bank and leases it back for a period of 20 years.
The firm buys back 1 million shares of stock from existing shareholders.
1). Which of above activity(ies) belong to CFO, CFI or CFF?
2). Will these actions increase or decrease the firm’s cash balance consider the accounting procedure/standards?
Explain why you selected these options and what assumptions you made about their accounting standards, credit policies, operating procedures, and other factors that you considered.
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