Converting preferred stock to common stock is part of [...] Activities
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Subject 1. Classification of Cash Flows and Non-Cash Activities cash Activities
Some investing and financing activities do not flow through the statement of cash flows because they don't require the use of cash:
Retiring debt securities by issuing equity securities to the lender. <span>Converting preferred stock to common stock. Acquiring assets through a capital lease. Obtaining long-term assets by issuing notes payable to the seller. Exchanging one non-cash asset for another non-cash asset. The purchase of no
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