Your bank loaned ten million dollars to Hamilton Stores to finance the construction of a manufacturing plant. In which section of Hamilton's statement of cash flows would you be able to determine whether the company used the cash to build the new plant?

Question

Quizplus · Accepted Answer

The cash used to build a new plant would be reported under "Investing activities" in the statement of cash flows, as it involves the purchase of long-term assets.

Your Bank Loaned Ten Million Dollars to Hamilton Stores to Finance