Basics of Cash Flow StatementCompany A is a textile manufacturing industry. Which of the following activities will be recorded in the cash flow statement of company A? (Note: More than one answer can be correct)Company A acquired company B by paying $2.5 billion in cash and $0.5 billion in shares.Company A sold a button-making textile machine at a loss of $25,000.Company A's brand recognition increased.  Company A took a loan from the bank at 6.5% interest rate.

The Cash Flow Statement of Company A would record the following activities:

1. Company A acquired company B by paying $2.5 billion in cash and$0.5 billion in shares: This activity would be recorded in the cash flow statement under the investing activities section. The cash portion of the acquisition ($2.5 billion) would be recorded as a cash outflow.

2. Company A sold a button-making textile machine at a loss of $25,000: This activity would also be recorded in the cash flow statement under the investing activities section. The cash received from the sale of the machine would be recorded as a cash inflow. The loss itself does not affect the cash flow statement, but it would affect the income statement and the balance sheet.

3. Company A's brand recognition increased: This activity would not be recorded in the cash flow statement. The cash flow statement only records transactions that involve the movement of cash. Brand recognition is an intangible asset and its increase or decrease does not involve a cash transaction.

4. Company A took a loan from the bank at 6.5% interest rate: This activity would be recorded in the cash flow statement under the financing activities section. The cash received from the loan would be recorded as a cash inflow. The interest rate itself does not affect the cash flow statement, but the interest payments would be recorded as a cash outflow in the operating activities section when they are paid.