In preparing Marjorie Company's statement of cash flows for the most recent year, the following information is available: $\begin{array}{llcc}
\text { Purchase of equipriert} &\$260,000 \
\text { Proceeds from the sale of equiprnent } &87,000\
\text { Purchase of lard } &91,000\
\end{array}$
Net cash flows from investing activities for the year were:

Question

In preparing Marjorie Company's statement of cash flows for the most recent year, the following information is available: $\begin{array}{llcc}
  \text {  Purchase of equipriert} &\$260,000  \
 \text { Proceeds from the sale of equiprnent } &87,000\
 \text { Purchase of lard } &91,000\
\end{array}$
 Net cash flows from investing activities for the year were:

Quizplus · Accepted Answer

To calculate net cash flows from investing activities, we need to subtract the cash outflows related to investing activities from the cash inflows related to investing activities. 
Cash outflow related to investing activities = Purchase of equipment + Purchase of land = $260,000 + $91,000 = $351,000 
Cash inflow related to investing activities = Proceeds from sale of equipment = $87,000 
Therefore, net cash flows from investing activities = Cash inflow - Cash outflow = $87,000 - $351,000 = -$264,000 
A negative value indicates net cash used in investing activities. Hence, the correct option is C.

In Preparing Marjorie Company's Statement of Cash Flows for the Most