Question

Selected information from Curl Up and Dye Salon's accounting records and financial statements for 2018 is as follows ($ in millions):

A) Cash paid to acquire equipment $20
B) Treasury stock purchased for cash 22
C) Proceeds from sale of land and buildings 45
D) Gain from the sale of land and buildings 16
E) Investment revenue received 33
F) Cash paid to acquire office equipment 40
On its statement of cash flows, the company should report net cash flows from investing activities of:
A) $15 million net outflow
B) $37 million net outflow
C) $30 million net inflow
D) $1 million net inflow

Answer 1

A) $15 million net outflow

Step-by-step explanation:

The preparation of the cash flows from the investing activities are shown below:

Cash flow from Investing activities

Cash paid to acquire equipment - $20 million

Proceeds from sale of land and buildings $45 million

Cash paid to acquire office equipment -$40 million

Net Cash flow from Investing activities -$15 million

All other transactions are related to the operating activities and financing activities. So, it is not relevant for the computation part. Hence, ignored it