During the year ended December 31,2019,Blythe Company paid cash of $2.2 million to purchase stock in another company,$1.0 million to purchase its common stock for treasury shares,$.5 million to buy short-term investments,and $3.4 million to purchase new equipment.Blythe also sold used equipment for cash of $.8 million when its book value was $.6 million.
A.Prepare the investing activities section of Blythe's cash flow statement for the year ended December 31,2019.
B.Is the net cash flow for investing activities a net cash inflow,or a net cash outflow? Briefly describe the reason for your answer.

Question

Quizplus · Accepted Answer

The Answer of During the year ended December 31,2019,Blythe Company paid cash of $2.2 million to purchase stock in another company,$1.0 million to purchase its common stock for treasury shares,$.5 million to buy short-term investments,and $3.4 million to purchase new equipment.Blythe also sold used equipment for cash of $.8 million when its book value was $.6 million.
A.Prepare the investing activities section of Blythe's cash flow statement for the year ended December 31,2019.
B.Is the net cash flow for investing activities a net cash inflow,or a net cash outflow? Briefly describe the reason for your answer.

During the Year Ended December 31,2019,Blythe Company Paid Cash of $2.2