Investing activities deal with the cash acquisition and sale of
long-term assets.
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What type of activity is the purchase of equipment for cash?
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A non-cash investing activity that goes into a separate schedule
of the notes of the statement of cash flows
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Investing activity
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Financing activity
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Operating activity
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In the introductory phase, the cash used in operations
will exceed the cash generated, the company will be spending cash to purchase
productive fixed assets, and will need to issue stock or debt to make these
purchases.
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In which stage of the corporate life cycle will cash flows from
the operations and from investing activities be negative, and the cash flows
from financing be positive?
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Decline phase
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Maturity phase
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Introductory phase
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Growth phase
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