alleryStart learning →A company buys back its own shares for cash. This is a
ANon-cash item
BOperating outflow
CFinancing outflow
DInvesting outflow
Answer & Solution
Correct answer: C. Financing outflow
Buying back shares reduces owners capital, which is a financing activity.
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A machine with book value Rs 70,000 is sold at a loss of Rs 15,000. The investing inflow iNet plant rose from Rs 5,00,000 to Rs 5,40,000 after Rs 60,000 depreciation, no sales. CasOperating +4,00,000, investing -3,00,000, financing +50,000, opening 1,20,000. Closing casCash 20,000, bank 1,00,000, 2-month bills 50,000, shares 80,000. Cash and equivalents?Cash flow statements are most commonly prepared using theThe cash flow statement reveals the quality of a company'sFinancial flexibility in cash flow analysis means the ability toUS GAAP requires interest paid to be included in which activities?