About cash flow

[vc]

Would anyone like to tell me

A.Cash flow from Investing includes the purchase of plant and equipment and the sale

of common shares of another company

B. Cash flow from Financing includes debt issued to purchase equipment and the sale of

the company's common stock


No any wrong with above statement ?

 

[Super I]

Obviously proceeds from the issuance of common stock can't be both CF from financing and CF from investing so at least one statement is wrong. This isn't a hard question. Open a book.

 

[bsc1280]

Super I,
I think you shoud open a book. the statment is right.

A. Purchases of PPE and purchases of ANOTHER company's shares is investing

b. DEBTS and SALES of OWN shares is financing

both statements are perfectly fine

 

[Super I]

oops, sorry

I read both options as issuance of stock by company in question. I shouldn't try to do these things after midnite when my brain shuts down. (But dispite my misreading, this is a straightforwrd question that can be found in the textbook and the writer could have gotten an answer by looking in the text faster than by posting this).

Nice slam bsc. if I can dish out I have to be able to take it when I make a (rare) mistake.