When a company acquires another company under the equity method or acquisition method, where is the cash outflow for the acquisition recorded in the cash flow statement?
If the company acquires another business, then any consideration that was funded with cash would be recorded in the investing section (#4 in the visual below) of the cash flow statement.
Back To All Questions
You might also be interested in...
-
What is reported in the investing section of the cash flow statement?
The investing section includes purchase (capital expenditures) or sale of fixed assets. It would include loans made to other entities to collect interest income. Includes the purchase or sale of available-for-sale and held-to-maturity securities (excludes trading securities). Any acquisition or sale of a business unit would be included in the investing section.
-
What are the three sections of the cash flow statement?
The three sections are operating, inventing, and financing. The phrase “Oops I forget” is helpful to remember the three section. The “O” in oops represents operating, the “I” represents investing, and the “f” in forget represents financing. The operating section of the statement of cash flows will represent the cash inflows and outflows from operating...
-
Where does a company record the purchase of an available-for-sale security in the cash flow statement?
When a company purchases an available-for-sale security, the purchase cost represents a cash outflow and would be recorded in the investing section of the cash flow statement. This is captured in #3 in the visual below.
What is reported in the investing section of the cash flow statement?
The investing section includes purchase (capital expenditures) or sale of fixed assets. It would include loans made to other entities to collect interest income. Includes the purchase or sale of available-for-sale and held-to-maturity securities (excludes trading securities). Any acquisition or sale of a business unit would be included in the investing section.
What are the three sections of the cash flow statement?
The three sections are operating, inventing, and financing. The phrase “Oops I forget” is helpful to remember the three section. The “O” in oops represents operating, the “I” represents investing, and the “f” in forget represents financing. The operating section of the statement of cash flows will represent the cash inflows and outflows from operating...
Where does a company record the purchase of an available-for-sale security in the cash flow statement?
When a company purchases an available-for-sale security, the purchase cost represents a cash outflow and would be recorded in the investing section of the cash flow statement. This is captured in #3 in the visual below.
