Answer:
The flow of cash of C Company from investing activity is $12.5 million
Explanation:
Recall that
The statement of cash flows comprises of three activities. The ones associated with the general operations of the company are refereed to as operating activities.
investing activities refers various investments in assets, their sale or purchase. while financing activities refers to activities that affect the capital with liabilities.
The Computation of cash flows from investing activity is given below:
Statement showing cash flow of activities from investing activities of Creating sound systems company
Particulars Amount (In millions)
The sale of investment 35
The sale of land 15.5
Purchase of equipment - 25.5
Purchase of Patent - 12.5
The flow of cash from investing
activities 12.5
Therefore,
The cash flow of investing activities C company is 12. 5 million
or we can compute as follows:
Cash flow from investing activities = Sale of investment + sale of land - purchase of equipment = Purchase of potent
which is
= $ 35 million + $15 million - $ 25 million - 12.5 million
= $ 12.5 million
Therefore, the flow of cash from investing activity is $12.5 million.
