On November 20,20x1, MMC Corp. purchased 2 new delivery vehicles for $95342 cash

Question

On November 20,20x1, MMC Corp. purchased 2 new delivery vehicles for $95342 cash. On December 11,20x1, the company sold, for $16340 cash, its old delivery vehicles, which had cost $53225 when purchased in 20x8. At the date of sale, accumulated depreciation on the old delivery vehicles equaled S27613. Which of the following total amounts would appear in the "cash flow from investing activities" section of the statement of cash flows with respect to the purchase and sale of delivery vehicles? Positive numbers represent a cash inflow; negative numbers represent a cash outflow. Check Your answer is incorrect. The correct answer is: -79002

Explanation / Answer

Cash flow from the investing activities Particulars Amount in $ Cash outflows on purchase of 2 new delivery vehicles ($95,342.00) Cash in flow from the sale of old delivery vehicles $16,340.00 Net cash floes from the investing activities ($79,002.00) Therefore, Option b. i.e., -$79,002 is correct.

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