Holly Oaks, 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:

Question

Quizplus · Accepted Answer

The cash inflows from investing activities are $80,000 ($120,000 from sale of equipment - $40,000 purchase of securities). The cash outflows from investing activities are $287,000 ($300,000 purchase of equipment - $13,000 sale of securities). Therefore, the net cash flows from investing activities is a cash outflow of $207,000 ($80,000 - $287,000).