Asked by Kayla Ellison on Jul 12, 2024
Verified
Determine the amount of cash flows from investing activities:
A) ($107,700) .
B) $107,700.
C) ($200,000) .
D) ($139,700) .
E) ($207,700) .
Investing Activities
Transactions involving the purchase and sale of long-term assets and other investments, not directly related to the entity’s primary line of business.
Fiscal Year
A one-year period that companies use for accounting purposes and preparing financial statements, which might not align with the calendar year.
- Acquire knowledge on the components and how to prepare the statement of cash flows.
- Assess adjustments in fixed assets, long-term liabilities, and equity to determine the cash flows from activities related to financing and investment.
Verified Answer
PS
Patrick SampleJul 14, 2024
Final Answer :
A
Explanation :
The information given in the table shows that Northeast Inc. had purchased equipment for $107,700 (indicated by the negative sign in the "Purchase of equipment" row), which is the only transaction related to investing activities. Therefore, the amount of cash flows from investing activities is ($107,700).
Learning Objectives
- Acquire knowledge on the components and how to prepare the statement of cash flows.
- Assess adjustments in fixed assets, long-term liabilities, and equity to determine the cash flows from activities related to financing and investment.
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