Question

Creative Sound Systems sold investments, land, and its own common stock for $34.0 million, $14.6 million, and $39.2 million, respectively. Creative Sound Systems also purchased treasury stock, equipment, and a patent for $20.6 million, $24.6 million, and $11.6 million, respectively. What amount should the company report as net cash flows from investing activities

Answer 1

Answer:Net cash flows provided by investing activities =$12.4 million

Explanation:

Net cash flows from investing activities for Creative Sound Systems:

Cash inflow from sale of investments                           $34.0million

Add: Cash inflow from sale of land                                  $14.6 million

less: Cash outflow from purchase of equipment          ($24.6million)

less :Cash outflow from purchase of patent                   ($11.6million)

Net cash flows provided by investing activities      $12.4 million