2- Which of the following events would be recognized as a cash outflow in the financing activities section of the statement of cash flows? A) Borrowing under a revolving line of credit in order to buy shares of an acquired company. BORROWING = INFLOW, NO? IS THE OUTFLOW B/C THEY BUY STOCK OF ANOTHER COMPANY??? B) Debt of an acquired company assumed by the parent company. NO CASH, JUST HITS BALANCE SHEET C) Proceeds from selling new preferred shares. INFLOW D) Issuance of a stock dividend. NO EFFECT ON CASH?
There are pretty good explanations courtesy of Dreary and map1 at http://www.analystforum.com/phorums/read.php?11,720208
supersharpshooter Wrote: ------------------------------------------------------- > There are pretty good explanations courtesy of > Dreary and map1 at > http://www.analystforum.com/phorums/read.php?11,72 > 0208 thx, i missed it so they said Because shares of an acquired company are bought, that’s sort of like treasury stock. got it now. treasury stock, mmmmmmm