Question

Ivanhoe Company increased its investments in marketable securities by $316,370 and paid $1,221,231 for new fixed assets during 2017. The company also repaid $770,200 of existing long-term debt while raising $913,555 of new debt capital. In addition, Ivanhoe had a net cash inflow of $352,002 from the sale of fixed assets, and repurchased stock in the open markets for a total of $51,001. What is the net cash used in long term investing activities by Ivanhoe? What is the net cash provided by the company’s financing activities? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answer 1

The Net cash from Investing refers to the Cash inflows less the Cash outflows that involved capital expenditure and investments in other company securities.

Net Investing Cash = Cash inflow - outflow

= 352,002 - 316,370 - 1,221,231

= ($1,185,599‬)

Financing activities are those that involve the raising of capital for the company including through stock and debt.

Net Cash from financing = Inflow - Outflow

= 913,555 - 770,200 - 51,001

= $92,354‬