Question

QS 12-12 Computing cash flows from investing LO P3 Sale of short-term stock investments $ 4,700...

QS 12-12 Computing cash flows from investing LO P3

Sale of short-term stock investments $ 4,700
Cash collections from customers 12,400
Purchase of used equipment 4,100
Depreciation expense 1,500

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

Investing Activities

Homework Answers

Answer #1

Sol. Calculation of Cash flow from Investing activities :

Particulars Amount
Sale of Short Term stock investments (As Proceed from sale of marketable securities) 4700
Add: Cash collection from customers (It's related to cash flow from operating activity i.e. increase in Debtors) 0
Less: Purchase of used equipments (As purchase of an asset or Property, plant and equipment) -4100
Add: Depreciation expense (Not a cash expense hence not included under cash flow statement) 0
Net Cash Provided by / (used in) investing activities 600

Thus, Net cash provided by Investing activity = $600

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