Carnival Bakery borrowed $500,000 from Front Street Bank.Carnival then hired a contractor to build a new cookie distribution outlet.In which section of Carnival's statement of cash flows would you find information that indicated that Carnival acquired the new cookie distribution outlet?

Question

Quizplus · Accepted Answer

The acquisition of a new asset, such as a cookie distribution outlet, would be classified under investing activities in the statement of cash flows, as it involves the purchase of a long-term asset.

Carnival Bakery Borrowed $500,000 from Front Street Bank