Question

Selected information from Peridot Corporation's accounting records and financial statements for 2021 is as follows ($ in millions): Cash paid to acquire machinery $ 31 Reacquired Peridot common stock 57 Proceeds from sale of land 92 Gain from the sale of land 51 Investment revenue received 74 Cash paid to acquire office equipment 87 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 $26 million

Step-by-step explanation:

Prepare a Cash flow from Investing Activity Section as follows :

Cash flow from Investing Activity

($ in millions)

Purchase of Machinery (31)

Proceeds from Sale of land 92

Purchase of Office Equipment (87)

Net Cash Flow from Investing Activities (26)

The Section only includes Activities relating to Capital Expenditure