Ask Question
30 November, 03:16

Creative Sound Systems sold investments, land, and its own common stock for $38 million, $15.8 million, and $41.6 million, respectively. Creative Sound Systems also purchased treasury stock, equipment, and a patent for $21.8 million, $25.8 million, and $12.8 million, respectively. What amount should the company report as net cash flows from investing activities? (List cash outflows and any decrease in cash as negative amounts. Enter your answer in millions. (i. e., $10,000,000 should be entered as 10).)

+2
Answers (1)
  1. 30 November, 04:40
    0
    net cash flow from the financial activities = $ 41.6 - $ 21.8 = $ 19.8

    Explanation:

    Given:

    Income raised by selling

    $ 38 million from investment

    $ 15.8 million from the land

    $ 41.6 million from the common stock

    also,

    the amount paid

    $ 21.8 million for treasury stock

    $ 25.8 million for equipment

    $ 12.8 million for patent

    Now,

    the net cash flow is counted for the financial activities i. e the buying and selling of the stocks and the other activities done belongs to the investment activities

    thus,

    the net cash flow from the financial activities = $ 41.6 - $ 21.8 = $ 19.8
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Creative Sound Systems sold investments, land, and its own common stock for $38 million, $15.8 million, and $41.6 million, respectively. ...” 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