Question

On a 10-k, how can you determine if the company bought any fixed assets during the year using cash

Answer 1

You can determine it with the help of statement of cash flows. In statement of cash flows, you will see cash flows from investing activities. Under investing activities all items such as purchase of fixed assets and sale of fixed assets are given. So if a company bought any fixed assets using cash then it will be shown under investing actvities in Statement of cash flows. So after seeing statement of cash flows we can determine if the company bought any fixed assets during the year using cash.

As we know that domestic public companies need to disclose their financial figures in 10K form. And this 10K form consisted of various financial statements such as Balance Sheet, Statement of cash flows, Statement of stockholders’ equity etc.

So statement of cash flows helps in knowing inflows of cash and outflow of cash as well.