Jaunty Ltd provides the following information for the period ended 30 June 2005:

All transactions are in cash unless otherwise indicated. What is the net cash flow from investing activities?

Question

Jaunty Ltd provides the following information for the period ended 30 June 2005:

All transactions are in cash unless otherwise indicated. What is the net cash flow from investing activities?

Quizplus · Accepted Answer

The net cash flow from investing activities is calculated by subtracting the cash outflows from the cash inflows related to investing activities. From the information given, we can see that the cash inflows from investing activities are $500,000 (proceeds from the sale of equipment) and the cash outflows from investing activities are $1,270,000 (purchase of land $1,000,000, purchase of buildings $300,000, purchase of equipment $30,000). So, the net cash outflow from investing activities is $1,270,000 - $500,000 = $770,000. Therefore, the correct answer is A.

Jaunty Ltd Provides the Following Information for the Period Ended