The purchasing of new equipment shows that the company has the cash to invest in inventory for growth. Finally, the amount of cash available to the company should ease investors' minds regarding the notes payable, as cash is plentiful to cover that future loan expense....
However, when a company divests an asset, the transaction is considered "cash in" for calculating cash from investing. For more on how cash flow from investing activities is calculated, please see Cash Flow From Investing Activities. Cash and cash equivalents are consolidated into a single line...
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