Allure Company made the following cash expenditures during the year:
(a)Paid $100,000 for interest capitalized as part of a self-construction project.
(b)Paid $225,000 for interest that was expensed during the year.
(c)Paid $300,000 for R&D expenditures that were immediately expensed.
(d)Paid $400,000 to acquire new machinery.
Indicate where in the statement of cash flows each of the preceding items would be reflected.Allure uses the indirect method of reporting cash flow from operations.

Question

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The Answer of Allure Company made the following cash expenditures during the year:
(a)Paid $100,000 for interest capitalized as part of a self-construction project.
(b)Paid $225,000 for interest that was expensed during the year.
(c)Paid $300,000 for R&D expenditures that were immediately expensed.
(d)Paid $400,000 to acquire new machinery.
Indicate where in the statement of cash flows each of the preceding items would be reflected.Allure uses the indirect method of reporting cash flow from operations.

Allure Company Made the Following Cash Expenditures During the Year