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18 February, 14:29

Allen Company bought a new copy machine to be depreciated straight line for three years for use by sales personnel. Where would this purchase be reflected on the Statement of Cash Flows?

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  1. 18 February, 14:40
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    Investing activity

    Explanation:

    Investing activities: It reports activities that involves buying and selling long-term assets. The buying or acquiring or purchasing is a cash outflow whereas the sale is a cash inflow

    Since in the given situation, the purchase of a new copy machine would be reflected under the investing activity as it is to be shown with the negative sign due to outflow of the cash
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