KAJ Incorporated purchased a machine costing $250,000 by paying $35,000 cash and signing a $215,000 note payable. How would this transaction be reported within the cash flow from financing activities section of the cash flow statement?

Question

Quizplus · Accepted Answer

The transaction involves a cash outflow of $35,000, which is reported in the investing activities section, and the note payable is a non-cash financing activity, so it is not reported in the financing activities section.

KAJ Incorporated Purchased a Machine Costing $250,000 by Paying $35,000