CFA CFA Level 1 CFO given the following information, a bit stumped

CFO given the following information, a bit stumped

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      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

    • simply_complex2
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        • CFA Level 1
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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

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        Thanks! Completely spaced out on that one.

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