If ABC Inc. buys a piece of equipment for $50,000, will use it in the business for 5 years and in 5
years expects to sell it for $10,000. What should ABC Inc. show in its cash flow statement in the
year of purchase?

A cash flow statement maintains a record of cash the inflow and outflow of a business. It communicates how much cash is held by the company at any particular time.

The cash flow statement's main components include cash from operating activities, cash from investing activities, and cash from financing activities.

For ABC, the equipment cost $50,000; this amount will reflect as an outflow in its cash flow statement.

If ABC Inc. buys a piece of equipment for $50,000, will use it in the business for 5 years and in 5 years expects to sell it for $10,000. What should ABC Inc. show in its cash flow statement in the year of purchase?

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If ABC Inc. buys a piece of equipment for $50,000, will use it in the business for 5 years and in 5
years expects to sell it for $10,000. What should ABC Inc. show in its cash flow statement in the
year of purchase?