Jamestown Inc. reported the following information for 2013 and 2014: What was the amount of net cash flows from investing activities for 2014?

Question

Jamestown Inc. reported the following information for 2013 and 2014:  What was the amount of net cash flows from investing activities for 2014?

Quizplus · Accepted Answer

To find the net cash flows from investing activities, we need to look at the cash flows from investing section of the statement of cash flows. In 2014, there was a cash outflow of $378,000 for the purchase of property, plant, and equipment, and a cash outflow of $13,000 for the purchase of investments. Therefore, the total cash outflow from investing activities was $391,000 ($378,000 + $13,000). Therefore, the answer is D, cash outflow of $378,000.