During the year ended December 31, 2017, Blythe Company paid $2.2 million to purchase stock in another company, $1.0 million to purchase its common stock for treasury shares, $.5 million to buy short-term investments, sold used equipment for $.8 million when its book value was $.6 million, and purchased new equipment for $3.4 million.
Required:
A.Prepare the investing activities section of Blythe's cash flow statement for the year ended December 31, 2017.
B.Is the net cash flow for investing activities a net cash inflow, or a net cash outflow? Briefly describe the reason for your answer.

Question

Quizplus · Accepted Answer

The Answer of During the year ended December 31, 2017, Blythe Company paid $2.2 million to purchase stock in another company, $1.0 million to purchase its common stock for treasury shares, $.5 million to buy short-term investments, sold used equipment for $.8 million when its book value was $.6 million, and purchased new equipment for $3.4 million.
Required:
A.Prepare the investing activities section of Blythe's cash flow statement for the year ended December 31, 2017.
B.Is the net cash flow for investing activities a net cash inflow, or a net cash outflow? Briefly describe the reason for your answer.

During the Year Ended December 31, 2017, Blythe Company Paid