Selected information from Illikon Corporation's accounting records and financial statements for 2021 is as follows ($ in million
s): Cash paid to acquire equipment $ 120 Cash paid to acquire land 54 Treasury stock acquired with cash and then retired 75 Dividend revenue received 66 Gain from the sale of buildings 78 Proceeds from sale of buildings 135 In its statement of cash flows, Illikon should report net cash outflows from investing activities of:
According to the scenario, computation of the given data are as follows:
We can calculate the Net cash outflow by using following formula:
Net cash outflow from investing activities to be reported = Cash paid to acquire equipment + Cash paid to acquire land - Proceeds from sale of building
By putting the value in the formula, we get
= $120 + $54 - $135
= $39
Hence, Net cash outflow from investing activities to be reported is $39.
Sustainable Procurement involves making purchase in such a way that makes it easy for the product bought to be reproduced for sale, as corporate social responsibility is considered when making purchase. Starbucks is making use of sustainable purchase in their transactions with the coffee farmers.
An option is a finantial instrument that allows you to chose wether you buy (a call option) or sell (a put option) an specific good or intrument in a specifictime in the future, at a specific price.
When talking about an option, you<u> can choose</u> if you are going to exercise your right to buy (if it is a call option) or sell (if it is a put option).
This is a difference between a future and an option: a future is a compromise to buy or sell an specific commodity or finantial instrument, while the option makes it optional (to buy or sell).
A stock exchange is a simple exchange of stocks, but without a compromise to do it at a specific time in the future or prices. There is no option or obligation to buy or sell in a common stock change case.
In this case, we are talking about a put option (an option to sell), and the finantial instrument that is linked to the option are shares of stocks.
Then, in a specified time in the future you will be able to sell shares of stock using a put option.
