Team Shirts,Inc.bought a computer system for $100,000 and received $10,000 for the sale of its used computers.It also received $10,000 from the sale of its inventory.The amount of net cash from INVESTING activities is ________.
A)$(100,000)
B)$(90,000)
C)$(80,000)
D)$80,000

Question

Quizplus · Accepted Answer

Net cash from INVESTING activities is calculated by subtracting the cash outflows (purchase of the computer system for $100,000) from the cash inflows (sale of used computers for $10,000 and sale of inventory for $10,000). Therefore, net cash from INVESTING activities is $20,000 - $100,000 = $(80,000). The answer is B, which represents $(90,000), an incorrect calculation.