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Interest Expense is not included in operating activities, why in this picture the cash flows from operating activities include payment to lenders for interest? TYPES
Interest Expense is not included in operating activities, why in this picture the cash flows from operating activities include payment to lenders for interest?
TYPES OF CASH INFLOWS AND OUTFLOWS Operating activitiesIncome statement items Cash inflows: From sale of goods or services. From interest received and dividends received. Cash outflows: To suppliers for inventory. To employees for wages. To government for taxes. To lenders for interest. To others for expenses. Investing activities-Changes in investments and long-term assets Cash inflows: From sale of property, plant, and equipment. From sale of investments in debt or equity securities of other entities. From collection of principal on loans to other entities. Cash outflows: To purchase property, plant, and equipment. To purchase investments in debt or equity securities of other entities. To make loans to other entities. Financing activities-Changes in long-term liabilities and stockholders' equity Cash inflows: From sale of common stock. From issuance of debt (bonds and notes). Cash outflows: To stockholders as dividends. To redeem long-term debt or reacquire capital stock (treasury stock)Step by Step Solution
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