Financial Reporting and Analysis 【Reading 27】Sample
If Jackson Ski Company issues common stock, and uses the proceeds to purchase fixed assets such as equipment: A)
| both cash flow from operations and cash flow from financing would increase. |
| B)
| cash flow from financing would decrease and cash flow from investing would increase. |
| C)
| cash flow from financing would increase and cash flow from investing would decrease. |
|
Cash flow from financing increases when stock is issued, while cash flow from investing decreases when spending for purchases of fixed assets. |