Question

Based on the following information:   Cash collections from customers $ 825   Purchase of used equipment 250...

Based on the following information:
  Cash collections from customers $ 825
  Purchase of used equipment 250
  Depreciation expense 205
  Sale of investments 475
  Dividends received 125
  Interest received 205
  Purchase of investments $ 275
  Dividends paid 1,250
  Interest paid 425
  Additional borrowing from bank 2,850
a.

Calculate the maximum investing cash inflows that could be reported under IFRS.
Business   Accounting   
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Answer #1

Cash flow from investing activities includes majorly three items :

(1) Sale proceed from fixed assets and non current investment

(2) Cash Purchase of fixed assets and non current investment

(3) Income received from any investments.

Calculation for maximum investing cash inflows

Sale of investments $ 475
Dividends received $ 125
Interest received $ 205
Purchase of used equipment $(250)
Purchase of investments $(275)
Maximum investing cash inflows $ 280

Why the other items are not been considered :

Cash collection from customers Operating activities
Depreciation expenses Operating activities
Dividends paid Financing activities
Interest paid Financing activities
Additional borrowing from bank Financing activities
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