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kaheart [24]
3 years ago
5

The following data is for the Matt Company for 20X1:

Business
1 answer:
vodka [1.7K]3 years ago
5 0

Answer: b. ($175,000)

Explanation:

Cash from investing activities refers to all transactions that have to do with the purchase or sale of a fixed asset (except losses or gains on sale of fixed assets) as well as securities of other companies.

In the above, the relevant transactions for investing activities are:

  • Purchase of Ithaca Corp. bonds
  • Proceeds from sale of machinery

Net cash from investing is therefore:

= -375,000 outflow + 200,000 inflow

= -$175,000

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