During 2012,Smithson Corp.had the following cash flows: receipt from customers,$10,000; receipt from the bank for long-term borrowing,$6,000; payment to suppliers,$5,000; payment of dividends,$1,000,payment to workers,$2,000; and payment for machinery,$8,000.What amount would be reported for investing cash flows on the Statement of Cash Flows?

Question

Quizplus · Accepted Answer

Investing cash flows include cash flows related to the purchase or sale of long-term assets, such as machinery. Therefore, the payment for machinery of $8,000 would be reported as a negative investing cash flow. The other cash flows listed are operating or financing activities.