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Discuss some of the typical financing, investing, and operating activities pany like Great Adventures is likely...

Discuss some of the typical financing, investing, and operating activities pany like Great Adventures is likely to have. What statement is used to measure these activities? activity do you consider as more significant to a company such as Great Adventures? Why?
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Answer #1

Financing Activities : Borrowing on Notes Payable, Issuance of Stock, Dividend Payments.

Investing Activities: Investing in Equipment, Land and Buildings, Investing in Marketable Securities.

Operating Activities: Clinic and Racing Revenues, Advertising Expense, Depreciation Expense, Insurance Expense, Legal Fees Expense, Supplies Expense etc.

The Statement of Cash Flows is used to measure these activities.

In a company like Great Adventures Inc. the Operating Activities are more significant, as it is a service based organization, as most of its operations are on cash basis. Hence the company is cash rich..The need for borrowings or issuance of stock would not arise unless they go for substantial expansion.

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