So I was working through some of the practice questions, and I don't know why they didn't take into consider loss on equipment sale as an outflow. Question is as follows: Proceeds from sale of equipment: 32000 Loss on equipment sale: 9000 Dividends paid: 12500 Purchase of office premises: 100000 Common Stock repurchases: 45000 Dividends received: 8500 Interest received: 1200 Supplier accounts paid: 3700 Cash collections from customers: 14200 Ending Cash balance: 98000 Answer: CFI=32000-100000=-68000

gains or losses on sales of equipment are non cash charges (they are just the difference between what the asset is recorded on the balance sheet and the cash the company gets paid for the asset) so they generally aren't reported on the cash flow statement. instead you'd see proceeds from the sales on the CF statement

Thanks! Completely spaced out on that one.

A CFA Level 1 Discussion About CFO Given The Following Information, A Bit Stumped

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This topic has 2 replies, 2 voices, and was last updated Jan-188:34 am by malkadhi.

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- simply_complex2
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  16 Jan 2018 at 8:07 am
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  gains or losses on sales of equipment are non cash charges (they are just the difference between what the asset is recorded on the balance sheet and the cash the company gets paid for the asset) so they generally aren’t reported on the cash flow statement. instead you’d see proceeds from the sales on the CF statement
- malkadhi
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  16 Jan 2018 at 8:34 am
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  Thanks! Completely spaced out on that one.
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