Answer:
The company’s cash flows from investing activities is $221,100
Explanation:
Cash flow from investing activities:
It records that transactions which is related to the purchase and sale of long term assets. The purchase of fixed assets has outflow of cash so, it is deducted whereas the sale of fixed assets has inflow of cash so, it is added.
The cash flow from investing activities is shown below:
Add : Sale of equipment (Book value - loss) = ($65,300 - $14,000) = $51,300
Less : Purchase of new truck = - $89,000
Add: Sale of land = $198,000
Add: Sale of long term investment = $60,800
So, the cash flow from operating activities :
= $51,300 - $89,000 + $198,000 + $60,800
= $221,100
The other cost is not related to the investing activities. Therefore, it is not considered in the computation part.
Hence, the company’s cash flows from investing activities is $221,100
