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When purchasing a new vehicle and selling an old one, if using the gross cash flow method, we would need to: Record the entire
When purchasing a new vehicle and selling an old one, if using the gross cash flow method, we would need to: Record the entire purchase price of the vehicle as an outflow and the sale of the old one as an inflow in the investing activities section of the cash flow statement. Prepare a separate statement in addition to the regular cash flow statement. Record the difference between the cost of the new and the proceeds of the old as either an increase or decrease to investing activities.
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