During the current year, ABC Corporation purchased a warehouse for $1,200,000.In order to pay for the warehouse, ABC sold its investment in another company's common stock costing $900,000 for $1,400,000.What amount is reported in ABC's investing section of its statement of cash flows?

Question

Quizplus · Accepted Answer

The investing section of the cash flow statement includes cash inflows and outflows from the purchase and sale of long-term assets and investments. The sale of the investment resulted in a cash inflow of $1,400,000, and the purchase of the warehouse resulted in a cash outflow of $1,200,000. The net cash flow from investing activities is $1,400,000 - $1,200,000 = $200,000.

During the Current Year, ABC Corporation Purchased a Warehouse for $1,200,000.In