The Statement of Cash Flows for the current year contained the following: What w

Question

The Statement of Cash Flows for the current year contained the following:

What was the amount of Cash Flows from Investing Activities?

Cash Outflow of $1,000

Cash Outflow of $40,000

Cash Outflow of $10,000

Cash Inflow of $10,000

Cash Inflow from customers $10,000 Cash Outflow from purchase of equipment $40,000 Cash Inlow from capital contributed by stakeholders $30,000 Cash Outflow from payments to suppliers & employees $5,000 Cash Outflow from payment of dividends to stockholders $1,000 Cash Inlow from borrowing from the bank $20,000

Explanation / Answer

Cash Flows from Investing Activities = Cash Outflow from purchase of equipment

= Cash Outflow of $40,000

Hence the correct answer is b. Cash Outflow of $40,000

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