Question

Sale of short-term stock investments $ 8,500

Cash collections from customers 21,300
Purchase of used equipment 6,600 Depreciation expense 2,700

Required:
Compute cash flows from investing activities using the above company information. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Cash flows from investing activities is $1,900

Step-by-step explanation:

Cash flow from Investing Activities involves movements in the purchase and / or sell of capital expenditures.

Prepare the Cash flow from Investing Activities Section as follows :

Cash flow from Investing Activities

Proceeds from Sale of short-term stock investments $ 8,500

Purchase of Equipment -$6,600

Net Cash flow from Investing Activities $1,900

Conclusion :

Cash flows from investing activities is $1,900