Question

Selected information from Peridot Corporation's accounting records and financial statements for 2021 is as follows ($ in millions): Cash paid to acquire machinery $ 35 Reacquired Peridot common stock 56 Proceeds from sale of land 97 Gain from the sale of land 55 Investment revenue received 72 Cash paid to acquire office equipment 84 In its statement of cash flows, Peridot should report net cash outflows from investing activities of:

Answer 1

Peridot should report net cash outflows from investing activities of $22 million.

Step-by-step explanation:

Peridot corporation

Statement of cash flows

$ in millions

Purchase of machinery

($35)

Proceeds from sale of land

$97

Cash paid to acquire office

($84)

Net cash outflows from investing activities

($22)

• We ignored required common stock because it belongs to financing activities section of cash outflows. Gain from sale of land and investment revenue is for operating activities section of the cash flow