Question

Selected information from Large Corporation's accounting records and financial statements for 2018 is as follows ($ in millions): Cash paid to acquire a patent $ 14 Treasury stock purchased for cash 11 Proceeds from sale of land and buildings 24 Gain from the sale of land and buildings 12 Investment revenue received 2 Cash paid to acquire office equipment 19 Large prepares its financial statements in accordance with IFRS. In its statement of cash flows, Large most likely reports net cash outflows from investing activities of:

Answer 1

Answer:

Large most likely reports net cash outflows from investing activities of $9 million.

Explanation:

Large Corporation

Statement of cash flows (extract)

                                                                      $ in millions

Purchase of patent                                            ($14)

Proceeds from sale of land and buildings          24

Cash paid to acquire office equipment              (19)

Net cash flows from investing activities         ($9)

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