FINAL EXAM part 2 C Chegg. The Student Hul x x ezto.mheducation.com/hm.tpx E con
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FINAL EXAM part 2 C Chegg. The Student Hul x x ezto.mheducation.com/hm.tpx E connect ACCT 2301: Fall 2017 ACCT 2301 ONLIN CCOUNTING INAL EXAM part 2 Question 15 (of 20) 5 Two years ago, your company bought $50,000 in bonds from another company. This month, it sold half of those bonds for $22,540 and purchased the common stock of another company for $1,950. On the statement of cash flows for this accounting period, your company would report a net cash O outflow of $22.540 from investing activities O outflow of $20.590 from investing activities. O inflow of $20.590 from investing activities O inflow of $22.540 from investing activities Type here to searchExplanation / Answer
c) Inflow of $20,590 from investing activities.
This is becuase when a company buys stocks and bonds of another company, it is considered as an investment and thus cash flow from these activites are included in investing activties. Sale of bonds of another company for $22540 will result in a cash inflow and purchase of shares of another company will result in outflow of 1950, thus there is a cash inflow of 20590.
Sale of bonds of another company 22540
purchase of shares of another co. (1950)
Cash inflow from investing activities $20,590
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