In preparing Marjorie Company's statement of cash flows for the most recent year,the following information is available:
$\begin{array}{llr}
\text {Purchase of equipment } &\$260,000\
\text {Proceeds from the sale of equipment } &87,000\
\text { Purchase of land } &91,000
\end{array}$

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:
$\begin{array}{llr}
  \text {Purchase of equipment  } &\$260,000\
 \text {Proceeds from the sale of equipment  } &87,000\
 \text { Purchase of land } &91,000
\end{array}$

Net cash flows from investing activities for the year were:

Quizplus · Accepted Answer

Net cash flows from investing activities are calculated by adding up all cash inflows and outflows related to investing activities. Here, the purchase of equipment ($260,000) and land ($91,000) are cash outflows, while proceeds from the sale of equipment ($87,000) are cash inflows. Thus, net cash used in investing activities = $260,000 + $91,000 - $87,000 = $264,000.

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