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    • CommentAuthorbelavia
    • CommentTimeApr 1st 2007
     
    Hello everyone,
    If a company acquires equipment by issuing common shares, is that still a capital expenditure?
    • CommentAuthorCounter
    • CommentTimeApr 3rd 2007
     
    I would say yes. It is a capital expenditure that happened to be financed by issuing stock. However, on the statement of cash flows, it will not appear as part of the capital expenditures that are listed in the Investing Activities section of the statement. The reason is that cash was not involved. The transaction will be disclosed as supplemental information for the statement of cash flows.
    Thankful People: belavia
    • CommentAuthorbelavia
    • CommentTimeApr 3rd 2007
     
    That sounds very good.
    Thanks!



 

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