Cash flow question purchase, question

hanvinh

If you issue stock to purchase a land, would it be a non-cash transaction or its CFF inflow and CFI outflow?

Thx

agulani

Non cash but you must detail it in a supplementary schedule.

nitoha

But dont we actually have an inflow from financing until the land is purchased? I know the answer is noncash but im just trying to make sense of this... Under what condition the cash flow from issuing share will actually be a CFF inflow? Can you give me an example?

kmf229

Only if the company issues stock for cash then uses the cash to buy the land. Unless a question is specifically worded that way you can just assume they traded stock for land.

kd26gioi

Ok thanks now it makes sense.