A Cash Flow Statement Is Divided into the Following Sections

question 133

Essay

A cash flow statement is divided into the following sections: cash flows from operating activities,cash flows from investing activities,and cash flows from financing activities.For each of the following events,state the section in which it would be listed.
a.Received cash from issuance of long-term note payable
b.Payment of interest (ASPE)
c.Repurchase of shares
d.Sale of land
e.Received cash from customers
f.Payment of dividends
g.Purchase of equipment
h.Issuance of 50 shares of common stock

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Definitions:

Discount Rate

The rate of interest that is utilized in a DCF analysis for calculating the current value of anticipated cash flows.

NPV

Net Present Value is a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and the present value of cash outflows.

Contracts

Legal agreements between two or more parties that are enforceable by law, outlining responsibilities, duties, and sharing of benefits.

IRR

Internal Rate of Return; the discount rate that makes the net present value of all cash flows from a particular project zero.