Asked by
Jesus Victor Ponce
on Dec 17, 2024Verified
The records of Lily's Landing showed a purchase of equipment in the amount of $17,100; sale of equipment in the amount of $41,200; a purchase of land in the amount of $10,400, and a loan to a borrower in the amount of $4,100. The amount of Net Cash Flow from Investing Activities using the indirect method is:
A) $9,600.
B) ($9,600) .
C) $52,000.
D) $72,800.
Net Cash Flow
The difference between a company's cash inflows and outflows within a specified period.
Investing Activities
Financial transactions related to the acquisition or disposal of long-term assets and investments, considered part of the cash flow statement.
Equipment Purchase
The acquisition of machinery or office equipment, usually classified as a capital expense, to be used in the operations of a business.
- Recognize and classify activities related to cash flow (operating, investing, and financing).
- Identify cash receipts and disbursements across the operating, investing, and financing categories.
Verified Answer
CA
Learning Objectives
- Recognize and classify activities related to cash flow (operating, investing, and financing).
- Identify cash receipts and disbursements across the operating, investing, and financing categories.