Milliken Company paid $2.2 million to purchase stock in another company, $1.0 million to repurchase treasury shares, $.5 million to buy short-term investments, sold used equipment for $.8 million when its book value was $.6 million, and purchased new equipment for $3.4 million. What was the net cash flow from investing activities

Question

Business

Case Clarke

13 January, 08:40

Milliken Company paid $2.2 million to purchase stock in another company, $1.0 million to repurchase treasury shares, $.5 million to buy short-term investments, sold used equipment for $.8 million when its book value was $.6 million, and purchased new equipment for $3.4 million. What was the net cash flow from investing activities

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Answers (1)

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Sterling Allen · Answer 1

The net cash flow from investing activities was $5.3 million

Explanation:

In order to calculate the net cash flow from investing activities we would to make the calculation of the following formula:

net cash flow from investing activities=purchase stock in another company+short-term investments purchase-sold used equipment+purchased new equipment

net cash flow from investing activities=$2.2 million+$.5 milion-$.8 million+$3.4 million

net cash flow from investing activities=$5.3 million

The net cash flow from investing activities was $5.3 million