The following events occurred last year at Taylor Company: Based on the above information, the net cash flows from investing activities for the year on the statement of cash flows would be

Question

The following events occurred last year at Taylor Company:  Based on the above information, the net cash flows from investing activities for the year on the statement of cash flows would be

Quizplus · Accepted Answer

The net cash flows from investing activities are calculated by subtracting the total cash used for investing activities from the total cash received from investing activities. 
Total cash used for investing activities = $36,000 (purchase of equipment) 
Total cash received from investing activities = $15,000 (sale of long-term investment) 
Net cash flows from investing activities = $15,000 - $36,000 = ($21,000) 
Therefore, the correct answer is B.

The Following Events Occurred Last Year at Taylor Company