Creative Sound Systems sold investments, land, and its own common stock for $30

Question

Creative Sound Systems sold investments, land, and its own common stock for $30 million, $15 million, and $40 million, respectively. Creative Sound Systems also purchased treasury stock, equipment, and a patent for $21 million, $25 million, and $12 million, respectively.

Creative Sound Systems sold investments, land, and its own common stock for $30 million, $15 million, and $40 million, respectively. Creative Sound Systems also purchased treasury stock, equipment, and a patent for $21 million, $25 million, and $12 million, respectively.

Explanation / Answer

Cash flow from financing activites = Cash Received from Issuing Stock or Debt - Cash Paid as Dividends and for Re-Acquisition of Debt/Stock

Thus, in this case,

Cash flow from financing activities = $40 million - $21 million = $19 million

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