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

Question

Quizplus · Accepted Answer

The acquisition of a new Jonesie distribution outlet would be considered a capital expenditure and would therefore be included in the Investing Activities section of Carnival's statement of cash flows.

Carnival Bakery Borrowed $500,000 from Front Street Bank