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On January 1,2011,Beyers Company Pays $205,000 Cash for Factory Equipment

Question 103

Multiple Choice

On January 1,2011,Beyers Company pays $205,000 cash for factory equipment that has an estimated useful life of 10 years and an expected residual value of $5,000.What will the company report on its statement of cash flows for the year ended December 31,2011?


A) Operating activity cash outflow of $(205,000)
B) Operating activity cash outflow of $(20,500)
C) Investing activity cash outflow of $(205,000)
D) Financing activity cash outflow of $(205,000)

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