A company reported the following information for a financial year:

What is the net cash inflow (outflow) from investing activities?
A) $2000 net cash inflow.
B) $6000 net cash inflow.
C) $(2000) net cash outflow.
D) $(4000) net cash outflow.

Question

A company reported the following information for a financial year:

What is the net cash inflow (outflow) from investing activities?
A) $2000 net cash inflow. 
B) $6000 net cash inflow. 
C) $(2000) net cash outflow. 
D) $(4000) net cash outflow.

Quizplus · Accepted Answer

The company reported a purchase of property, plant, and equipment for $5000 and sale of an investment for $3000. Therefore, the net cash outflow from investing activities is ($5000 - $3000) = $(2000).

A Company Reported the Following Information for a Financial Year