Since business has been rapidly expanding, A Shot of Sugar Bakery decides to purchase a second industrial oven. The cash paid for this oven would be listed in the section of the statement of cash flows.

Since business has been rapidly expanding, A Shot of Sugar Bakery decides to purchase a second industrial oven. The cash paid for this oven would be listed in the  Investing section of the statement of cash flows.

The cash flows that are related to the activities such as investing and financing and includes cash flowing from operations. The operations of a firm includes sales, production, payment collection and delivery of the products of the company. The main aim of this cash flow statement is to provide a detailed information about cash that is earned and the spending of the cash.

It gives a detailed information about the areas where the cash flows in and also the cash that is being spent for a particular period of time. This helps to know the liquidity and the solvency of the business in long term. Thus the purchase of the industrial oven by the Sugar Bakery can be considered as the  thing that is essential for its operation and is related to the operating activities. Hence, it should be listed in  the Investing section of the statement of cash flows.

the first one $24,630

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