Northington, Inc. is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from investing activities:
A)$(107,700).
B)$107,700.
C)$(200,000).
D)$(139,700).
E)$(207,700).

Question

Northington, Inc. is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from investing activities: 
A)$(107,700). 
B)$107,700. 
C)$(200,000). 
D)$(139,700). 
E)$(207,700).

Quizplus · Accepted Answer

To calculate cash flows from investing activities, we need to consider the changes in non-current assets. From the information given, we can see that there was a purchase of equipment for $300,000, a sale of land for $107,000, and an increase in investments by $86,300. Therefore, the total cash outflow from investing activities is $300,000 (purchase of equipment) - $107,000 (sale of land) - $86,000 (increase in investments) = $(107,700). Therefore, the correct answer is A) $(107,700).