Is depreciation a source of cash flow

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Question: 1. Assume that a company purchases land for $100,000, paying $20,000 cash and borrowing the remainder with a longterm note payable. How should this transaction be reported on a statement of cash flows?

2. On June 3, a company borrows $50,000 cash by giving its bank a 160-day, interest-bearing note. On the statement of cash flows, where should this be reported?

3. If a company reports positive net income for the year, can it also show a net cash outflow from operating activities? Explain.

4. Is depreciation a source of cash flow?

Reference no: EM131535677

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