Thursday, December 29, 2011

Why is an amount in the cash flows from investing activities shown in parenthesis?

An amount shown in parenthesis within the investing
activities section of the cash flow statement indicates that cash
was used to purchase a long-term asset. For example, if a company
spent $350,000 to purchase property, plant and equipment, it will
be reported in the cash flows from investing activities as Capital
expenditures.(350,000). The amounts appearing

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