Selected information from Curl Up and Dye Salon’s accounting records and financi

Question

Selected information from Curl Up and Dye Salon’s accounting records and financial statements for 2018 is as follows ($ in millions): Cash paid to acquire equipment $20; Treasury stock purchased for cash $22; proceeds from sale of land and buildings $45; gain from the sale of land and buildings $16; investment revenue received $33; cash paid to acquire office equipment $40. On its statement of cash flows, the company should report net cash flows from investing activities of:

$15 million net outflow

$37 million net outflow

$30 million net inflow

$1 million net inflow

Explanation / Answer

The correct answer is :

$15 million net outflow

Note :

net cash flows from investing activities = Cash paid to acquire equipment +  proceeds from sale of land and buildings + cash paid to acquire office equipment

= (-$20 +$ 45 - $ 40 )

= -15 Million

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.