Selected information from Arbon Corporation's accounting records and financial statements for 2021 is as follows ($ in millions) : Cash paid to acquire machinery $ 36 Reacquired Arbon common stock 50 Proceeds from sale of land 90 Gain from the sale of land 52 Investment revenue received 66 Cash paid to acquire office equipment 80 In its statement of cash flows, Arbon should report net cash outflows from investing activities of:

Question

Business

Harper Parks

26 July, 22:33

Selected information from Arbon Corporation's accounting records and financial statements for 2021 is as follows ($ in millions) : Cash paid to acquire machinery $ 36 Reacquired Arbon common stock 50 Proceeds from sale of land 90 Gain from the sale of land 52 Investment revenue received 66 Cash paid to acquire office equipment 80 In its statement of cash flows, Arbon should report net cash outflows from investing activities of:

+4

Answers (1)

Know the Answer?

Rachel · Answer 1

Arbon should report net cash outflows from investing activities of: ($26)

Explanation:

Arbon Corporation

Statement of cash flows (extract)

Purchase of machinery ($36)

Proceeds from sale of land 90

Cash paid to acquire office equipment (80)

Net cash outflows from investing activities ($26)

Therefore, Arbon should report net cash outflows from investing activities of ($26).

Note that reacquired stock affects the financing section of the cash flows, while gain on sale of land and investment revenue received affect the operating section of the cash flows.