During 20X4, the Following Items Were Reported on Shoe Co's

question 85

Essay

During 20X4, the following items were reported on Shoe Co's statement of cash flows in millions of dollars. For each item, identify the type of activity it is (operating, investing, financing) and the effect it would have on cash flows statement (added or deducted). (in millions $) $$\begin{array} { | l | r | } \hline \text { Acquisitions and investments in unconsolidated affiliates } & \$ 64 \\\hline \text { Sales of property, plant, and equipment } & 38 \\\hline \text { Investee equity income, and gains on sale of equipment } & 207 \\\hline \text { Short-term investments, purchases } & 44 \\\hline \text { Short-term investments, sales } & 38 \\\hline\end{array}$$

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Definitions:

Substantial Performance

Substantial performance refers to the completion of a nearly all terms of a contract or agreement, meeting the essential requirements despite minor deviations.

Paint Job

The application of paint to a surface, commonly referring to the process of painting vehicles or buildings for protective or aesthetic purposes.

Offer Of Performance

Offer of performance, in legal terms, is when a party involved in a contract demonstrates readiness and willingness to fulfill their obligations under the contract.

Conditional Contracts

Contracts that require certain conditions to be met before they can be fully enforceable or before an obligation to perform arises.