Rampart Inc.recorded the following transaction:

In the statement of cash flows,this would be reported as a:
A)$3 million outflow from investing activities.
B)$15 million outflow from investing activities.
C)$3 million outflow from investing activities and $12 million noncash investing and financing activity.
D)None of these answer choices is correct.

Question

Rampart Inc.recorded the following transaction:

In the statement of cash flows,this would be reported as a:
A)$3 million outflow from investing activities. 
B)$15 million outflow from investing activities. 
C)$3 million outflow from investing activities and $12 million noncash investing and financing activity. 
D)None of these answer choices is correct.

Quizplus · Accepted Answer

Without additional information, it is impossible to determine the exact nature of the transaction. However, based solely on the given information, we can conclude that it involves a noncash investing and financing activity of $12 million, plus a cash outflow from investing activities of $3 million. Therefore, the correct answer is C.

Rampart Inc.recorded the Following Transaction