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 the above 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 the above is correct.

Quizplus · Accepted Answer

Without more information about the specific transaction, it is difficult to determine the exact impact on the statement of cash flows. However, based on the options given, choice C is the most likely answer. A $3 million outflow from investing activities and $12 million noncash investing and financing activity would add up to the $15 million total provided in option B. It is also possible that the transaction could have impacts on other sections of the statement of cash flows, such as operating activities or financing activities, but without further information it is impossible to know for sure.