If you were to prepare a statement of cash ﬂows, what is the cash ﬂow from investment activities($ in millions)?
A) -$1,500
B) -$2,400
C) -$3,400
D) $4,500
E) $4,600

Question

If you were to prepare a statement of cash ﬂows, what is the cash ﬂow from investment activities($ in millions)?
A) -$1,500 
B) -$2,400 
C) -$3,400 
D) $4,500 
E) $4,600

Quizplus · Accepted Answer

The cash flow from investment activities can be calculated as follows:

Proceeds from sale of property, plant, and equipment = $200 
Purchase of property, plant, and equipment = -$2,600 
Net cash used in investment activities = -$2,400 (subtracting the two above)

Therefore, the correct answer is B: -$2,400 million.

If You Were to Prepare a Statement of Cash ﬂOws