Northington,Inc.is preparing the company's statement of cash flows for the fiscal year just ended.Using the following information,determine the amount of cash flows from investing activities:

Question

Quizplus · Accepted Answer

To calculate cash flows from investing activities, we need to look at changes in long-term assets. 
Sale of marketable securities = $120,000 
Purchase of land = ($227,700) 
Purchase of equipment = ($600,000) 
Net cash flows from investing activities = -$107,700 (negative because more cash was used for investments than received from selling marketable securities)