California Company reports the following information:
$\begin{array}{lll}&12/31/14&12/31/15\
\text { Fixed Assets } & \$ 330 & \$ 581 \
\text { Less: Accumulated Depreciation } &{(110)} &(127)\
\text { Net Fixed Assets } &{\$ 220}&{\$ 454} \
\end{array}$
Depreciation expense for the year ending December 31,2015 is $17.No fixed assets were sold during 2015.What is the net cash flow from investing activities for the year ending December 31,2015?
A) $17 cash inflow
B) $251 cash inflow
C) $251 cash outflow
D) $268 cash outflow

Question

Quizplus · Accepted Answer

The increase in net fixed assets from $220 to $454 is $234. Adding back the depreciation expense of $17 gives a total cash outflow of $251 for purchasing new fixed assets.

California Company Reports the Following Information Depreciation Expense for the Year Ending December 31,2015 Is $17