Flynn Corporation had the following cash flows for the current year.The company uses the direct method in preparing the statement of cash flows.Use the information above to answer the following question.What is the net cash provided by (used in)investing activities?
A)($200,000)
B)$420,000
C)$410,000
D)($190,000)

Question

Flynn Corporation had the following cash flows for the current year.The company uses the direct method in preparing the statement of cash flows.Use the information above to answer the following question.What is the net cash provided by (used in)investing activities? 
A)($200,000) 
B)$420,000 
C)$410,000 
D)($190,000)

Quizplus · Accepted Answer

The net cash provided by (used in) investing activities is calculated by subtracting the total cash outflows for investing activities from the total cash inflows for investing activities. In this case, the total cash outflows for investing activities are $620,000 (purchase of equipment for $320,000 and purchase of investments for $300,000) and the total cash inflows for investing activities are $420,000 (proceeds from sale of land). Therefore, the net cash provided by (used in) investing activities is ($200,000).

Flynn Corporation Had the Following Cash Flows for the Current