The following events occurred last year at Marigold Company:
Based on the information above, net cash flow from investing activities for the year on the statement of cash flows would be:

A) ($10,000).
B) ($25,000).
C) ($17,000).
D) ($34,000).

Question

The following events occurred last year at Marigold Company:
 Based on the information above, net cash flow from investing activities for the year on the statement of cash flows would be:

A) ($10,000). 
B) ($25,000). 
C) ($17,000). 
D) ($34,000).

Quizplus · Accepted Answer

Cash flow from investing activities = (Purchase of plant and equipment) + Sale of long-term investment = ($40,000) + $15,000 = ($25,000)

The Following Events Occurred Last Year at Marigold Company