Discuss the receipt of rental payments from customers

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If a company both sells and leases equipment as a business, then is the receipt of rental payments from customers an operating or investing activity on the statement of cash flows? Furthermore, this equipment depreciates over time, but since it acts as inventory for the business then are you able to record depreciation? Does this go under operating in cash flow statement? How about when this equipment is used up and sold at salvage value for the equipment the company has been renting out, how does this effect your cash flows?

Reference no: EM131763483

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