The only operating activity noted is the collections of $100,000 for goods sold to customers. The sale of securities is an investing activity, and the issuance of additional company stock is a financing activity.
This includes the $100,000 in collections for goods sold to customers, the $25,000 capital gain from the securities sold, and the $10,000 proceeds from the issuance of additional company stock. Only the collections for goods sold to customers are cash inflows from operating activities. Furthermore, the amount of cash received from the sale of the securities does not consist of only the gain on the sale; so even if that did belong in operating activities, the amount would be incorrect.
This includes the $100,000 in collections for goods sold to customers, the $125,000 received from the sale of the securities, and the $10,000 proceeds from the issuance of additional company stock. Only the collections for goods sold to customers are cash inflows from operating activities.
This includes the $100,000 in collections for goods sold to customers and the $25,000 capital gain from the securities sold. Only the collections for goods sold to customers are cash inflows from operating activities. Furthermore, the amount of cash received from the sale of the securities does not consist of only the gain on the sale; so even if that did belong in operating activities, the amount would be incorrect.
|
