Milliken Company paid $2.2 million to purchase stock in another company,$1.0 million to repurchase treasury shares,$0.5 million to buy short-term investments,sold used equipment for $0.8 million when its book value was $0.6 million,and purchased new equipment for $3.4 million.What was the net cash flow from investing activities?
A)$6.3 million net cash outflow.
B)$5.3 million net cash outflow.
C)$5.1 million net cash outflow.
D)$4.8 million net cash outflow.

Question

Quizplus · Accepted Answer

Net cash flow from investing activities = (-)purchase of stock + (-)treasury stock repurchase + (-)purchase of short-term investments + (+)proceeds from sale of used equipment + (-)purchase of new equipment
= (-)2.2 million + (-)1.0 million + (-)0.5 million + (+)0.8 million + (-)3.4 million 
= (-)5.3 million net cash outflow.

Milliken Company Paid $2