The following transactions apply to X Company: What is the net effect of these t

Question

The following transactions apply to X Company:

What is the net effect of these transactions in the Investing Section of the Statement of Cash Flows (assume that a positive number means a net inflow and a negative number means a net outflow)?

Sold merchandise for cash $2,298 Paid wages 4,383 Purchased new equipment for cash 9,752 Paid dividends 1,430 Bought supplies on account 4,561 Paid operating expenses 5,476 Issued stock to investors for cash 1,698 Repaid a bank loan 5,196 Disposed of old equipment for cash 7,895 Loaned money to another company 3,224 Recorded depreciation during the year 1,108

Explanation / Answer

The net effect of these transactions in the Investing Section would a decrease in Cash flow from investing activities by 2492.

Purchased new equipment for cash -8948 Disposed of old equipment for cash 6456 Net Cash Used by Operating Activities -2492

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