Roberts Company sold equipment for $250,000,purchased a building for $6,500,000,sold short-term investments for $280,000,repaid principal on a note payable for $2,300,000 plus $230,000 of interest,and paid cash dividends of $20,000.
- What was the net cash flow from investing activities?

Question

Quizplus · Accepted Answer

The net cash flow from investing activities is calculated by subtracting cash outflows from cash inflows related to investments. Cash inflows: $250,000 (equipment) + $280,000 (investments) = $530,000. Cash outflows: $6,500,000 (building). Net cash flow = $530,000 - $6,500,000 = $5,970,000 outflow.

Roberts Company Sold Equipment for $250,000,purchased a Building for $6,500,000,sold