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

Question

Business

Ashley Horne

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)

Know the Answer?

Luz · Answer 1

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