Question
Aquamarine Inc. is a manufacturer of perfumes and has several retail outlets throughout Europe. The company uses IFRS to report its financial statements and it
Aquamarine Inc. is a manufacturer of perfumes and has several retail outlets throughout Europe. The company uses IFRS to report its financial statements and it recently entered into the following transactions:
Transaction 1: Borrowed money from a bank for the purchase of inventory worth $180,000.
Transaction 2: Made sales amounting to $990,000, of which $38,000 were made on credit.
Transaction 3: Invested excess cash amounting to $12,000 in securities classified as heldfortrading and $8,000 in securities classified as held tomaturity.
Transaction 4: Paid dividends amounting to $130,000.
Transaction 1 will most likely:
Decrease Aquamarines cash flow from investing activities by $180,000.
Increase Aquamarines cash flow from operating activities by $180,000.
Increase Aquamarines cash flow from financing activities by $180,000.
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