Company X paid Company Y $1.35 million for a new plant.During the same accounting period,Company X experienced the following changes in its balance sheet: cash fell $350,000,accounts receivable rose $321,300,inventory rose $275,800,property,plant,and equipment rose $752,900,and bonds payable rose $1 million.The net cash flow from financing activities is:

Question

Quizplus · Accepted Answer

The only cash flow from financing activities is the $1 million increase in Bonds Payable.Transactions involving plant,property and equipment are investing activity,and changes in current assets are used to determine cash flow from operating activities.

Company X Paid Company Y $1