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

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.

agulani

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