Question

Red Barchetta Co. paid $27,860 in dividends and $28,815 in interest over the past year. During the year, net working capital increased from $13,698 to $18,419. The company purchased $42,880 in fixed assets and had a depreciation expense of $17,165. During the year, the company issued $25,200 in new equity and paid off $21,280 in long-term debt. What was the company's cash flow from assets?

Answer 1

Answer:

the company's cash flow from assets is - $42,880.

Explanation:

Cash flow from assets is also known as cash flow from investment activities.

Prepare a section of cash flow from investing activities to determine the cash flow from assets.

The only cash flow from investing activity is purchase price (cash outflow) of the assets of $42,880.