preparing tywin company's statement of cash flows for the most recent year, the following information is available: purchase of

Question

1 year ago

5

equipment $ 260,000 proceeds from the sale of equipment 87,000 purchase of land 91,000

1 answer:

Blizzard [7] · Answer 1 · 2024-03-18T16:53:37+03:00

-$264,000

Explanation:

Below is a summary of the net cash flows from investing operations for the year.

flow of money from investments

Equipment purchase: $260,000

$87,000 was earned from the sale of equipment.

Land purchase: $91,000

-$264,000 in net cash flow was utilised for investing activities.

Sales are a cash inflow, so they would be added, whereas the purchase is a cash outflow, so it would be reflected as a minus sign.

To learn more about cash flows from the given link.

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