Tower Corporation is in the process of preparing the corporation’s financial statements for the year ending September 30, 2021. On September 15, 2021 Tower Corporation used excess cash to purchase $100,000 of one month U.S. Treasury Bills. These Treasury Bills will mature on 10/15/21. The Treasury Bill investment is correctly classified as a Cash Equivalent in the September 30, 2021 Balance Sheet. However, the staff accountant for Tower Corp. is unsure of how to classify the $100,000 cash outflow in the Statement of Cash Flows. The accountant is unsure if the cash outflow should be included in the Statement of Cash Flows and if so would be an operating, investing or financing activity
Tower Corporation is in the process of preparing the corporation’s financial statements for the year ending September 30, 2021. On September 15, 2021 Tower Corporation used excess cash to purchase $100,000 of one month U.S. Treasury Bills. These Treasury Bills will mature on 10/15/21. The Treasury Bill investment is correctly classified as a Cash Equivalent in the September 30, 2021
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