Unpaid CAPEX in Cash Flow from Investments


Assume a company bought only $1 million in fixed assets in a year, but has financed it completely. Should Investements in PPE (Cash Flow from Investments) be equal to 0? Or should it have a $1 million value, showing the financing in changes in account payables (Cash flow from operations)??



It should show $1 million in PP&E on its balance sheet, with a $1 million cash outflow from investing.

It should show $1 million in Notes Payable or Loans Payable, not Accounts Payable, with a $1 million cash inflow from financing.

Thanks, great answer

You’re welcome.

Is this part of the L3 curriculum? I don’t think so