The Statement of Cash Flows for the current year contained the following:

The change in cash for the current year was an increase of $14,000.
-Use the information above to answer the following question.What was the amount of cash flows from (used in)investing activities?

Question

The Statement of Cash Flows for the current year contained the following:
  
The change in cash for the current year was an increase of $14,000.
-Use the information above to answer the following question.What was the amount of cash flows from (used in)investing activities?

Quizplus · Accepted Answer

The increase in cash of $14,000 means that the total cash inflows must be greater than the total cash outflows. Since cash flows from operating activities are usually positive, the increase in cash is likely driven by cash inflows from financing and/or investing activities. The cash flows from financing activities are given as a net inflow of $16,000. Therefore, the cash flows from investing activities must be a net outflow of ($40,000) to result in a net increase in cash of $14,000.

The Statement of Cash Flows for the Current Year Contained