Shield Company Just Started in Business, and It Was Looking

question 6

Multiple Choice

Shield Company just started in business, and it was looking for additional capital in order to purchase a property to build their headquarters. They found an investor who was willing to sell them land worth $700,000 in exchange for stock in the company. How would this transaction be shown on the statement of cash flows?

• A)in the investing activities section
• B)in the non-cash investing and financing activities section
• C)in the operating activities section
• D)in the financing activities section

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Definitions:

Extended Inventory

An expanded list of goods and materials kept on hand by a business, including raw materials, work-in-progress, and finished goods.

Decrease Retailer Prices

A strategy where retailers lower the prices of goods or services, potentially to increase sales volume or clear inventory.

Vertical Contracts

Arrangements between companies at different levels in the supply chain, such as manufacturers and retailers, to control the supply and price of products.

Benefits

Advantages or favorable outcomes resulting from specific actions, policies, or circumstances.