In a statement of cash flow (Canada), if you paid for an equipment with both cas

Question

In a statement of cash flow (Canada), if you paid for an equipment with both cash ($5000) and a loan ($10,000) you include the $5000 used in the cash flow from investment section and the repayment of the loan principal in the financing section right? In a statement of cash flow (Canada), if you paid for an equipment with both cash ($5000) and a loan ($10,000) you include the $5000 used in the cash flow from investment section and the repayment of the loan principal in the financing section right? In a statement of cash flow (Canada), if you paid for an equipment with both cash ($5000) and a loan ($10,000) you include the $5000 used in the cash flow from investment section and the repayment of the loan principal in the financing section right?

Explanation / Answer

That is correct. When the loan of $15000 will be taken, a cash outflow of $5000 shall be reported in investing activity. The cash inflow of $10000 and the repayment of loan principal shall be reported in the financing section.

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