Question

Allen Company bought a new copy machine to be depreciated straight line for three years for use by sales personnel. Where would this purchase be reflected on the Statement of Cash​ Flows?

Answer 1

Investing activity

Step-by-step explanation:

Investing activities: It reports activities that involves buying and selling long-term assets. The buying or acquiring or purchasing is a cash outflow whereas the sale is a cash inflow

Since in the given situation, the purchase of a new copy machine would be reflected under the investing activity as it is to be shown with the negative sign due to outflow of the cash