Creative Sound Systems sold investments, land, and its own common stock for $32.0 million, $15.2 million, and $40.4 million, respectively. Creative Sound Systems also purchased treasury stock, equipment, and a patent for $21.2 million, $25.2 million, and $12.2 million, respectively.

What amount should the company report as net cash flows from investing activities? (Enter your answers in millions rounded to one decimal places. List cash outflows as negative amounts.)

Question

Business

Sarai Haley

27 November, 05:48

Creative Sound Systems sold investments, land, and its own common stock for $32.0 million, $15.2 million, and $40.4 million, respectively. Creative Sound Systems also purchased treasury stock, equipment, and a patent for $21.2 million, $25.2 million, and $12.2 million, respectively.

What amount should the company report as net cash flows from investing activities? (Enter your answers in millions rounded to one decimal places. List cash outflows as negative amounts.)

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Answers (1)

Know the Answer?

Clare Summers · Answer 1

Net cash flow from investing activities is $47.2 million - $58.6 million = -11.4 million.

Explanation:

Draft Cashflow Statement.

Operating Activities; $0.0 million

Investing Activties;

Cash Inflows;

Sales of; investment $32.0 million, plus sales of Land $15.2 million = $47.2 million.

Cash outflows; Purchase of; treasury stock - $21.2, plus equipment - $25.2 million, plus patent - $12.2 million = -$58.6 million

Net cash flow from investing activities is $47.2 million less $58.6 million=-11.4 million.

Financing Activities;

Issues of common stock $40.4

Note that sales of own common stock is a financing activity