Question

Selected information from Peridot Corporation's accounting records and financial statements for 2018 is as follows ($ in millions): Cash paid to acquire machinery $ 36 Reacquired Peridot common stock 50 Proceeds from sale of land 70 Gain from the sale of land 52 Investment revenue received 66 Cash paid to acquire office equipment 80 In its statement of cash flows, Peridot should report net cash outflows from investing activities of: Group of answer choices $46 million. $72 million. $26 million. $78 million.

Answer 1

Answer:

Peridot should report net cash outflows from investing activities of: $46 million

Explanation:

Peridot Corporation

Statement of cash flows (extract)

                                                                       $ in millions

Purchase of machinery                                            ($36)

Proceeds from sale of land                                         70

Cash paid to acquire office equipment                    (80)

Net cash flows from investing activities              ($46)

Note that reacquired common stock belongs to financing activities section of the cash flows, while gain from sale of land and investment revenue belong to operating activities section of the cash flows