Ask Question
14 July, 19:43

Selected information from the 2018 accounting records of Dunn's Auto Dealers is as follows: Cost of furniture purchased for cash $ 8,000 Proceeds from bank loan 100,000 Repayment of bank loan (includes interest of $4,000) 44,000 Proceeds from sale of equipment 5,000 Cash collected from customers 320,000 Purchase of stock of another corporation as an investment 20,000 Common stock issued for cash 200,000 In its statement of cash flows, Dunn's should report net cash outflows from investing activities of:

a. $260,000

b. $265,000

c. $60,000

d.$256,000

+2
Answers (1)
  1. 14 July, 22:58
    0
    Answer: $23,000

    Explanation:

    Given that,

    Cost of furniture purchased for cash = $8,000

    Proceeds from bank loan = 100,000

    Repayment of bank loan (includes interest of $4,000) = 44,000

    Proceeds from sale of equipment = 5,000

    Purchase of stock of another corporation as an investment = 20,000

    Dunn's should report net cash outflows from investing activities of:

    = Proceeds from sale of equipment - Cost of furniture purchased for cash - Purchase of stock of another corporation as an investment

    = $5,000 - $8,000 - $20,000

    = $23,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Selected information from the 2018 accounting records of Dunn's Auto Dealers is as follows: Cost of furniture purchased for cash $ 8,000 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers