Classify the following activities as cash flow from operating-01983
This subjective question is related to the book/course vu mgt411 Money & Banking. It can also be found in vu mgt411 Mid Term Solved Past Paper No. 6.
Question 1: Classify the following activities as cash flow from operating, investing and financing activities.
- Payments for repurchase of company shares
- Collections on loan principal and sales of other firms' debt instruments
- Tax payments
- Expenditure for purchase of other firms' equity instruments
- Payments to suppliers for goods and services
Answer:
Payments for repurchase of company shares: Financing activities
Collections on loan principal and sales of other firms' debt instruments: Investing activities
Tax payments: Operating activities
Expenditure for purchase of other firms' equity instruments: Financing activities