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24 September, 06:50

Mobile Video Systems sold land, investments, and issued their own common stock for $11 million, $16 million, and $21 million, respectively. Mobile Video also purchased treasury stock, equipment, and a patent for $1 million, $2 million, and $4 million, respectively.

(a) What amount should the company report as net cash flows from investing activities? (Negative value should be indicated by minus sign. Enter your answer in millions.)

(b) What amount should the company report as net cash flows from financing activities? (Negative value should be indicated by minus sign. Enter your answer in millions.)

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  1. 24 September, 10:13
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    a. $21 million

    b. $20 million

    Explanation:

    a. Cash flow from Investing activities

    Sale of land $11 million

    Sale of investments $16 million

    Purchase of equipment - $2 million

    Purchase of patent - $4 million

    Net Cash flow from Investing activities $21 million

    b. Cash flow from Financing activities

    Issue of common stock $21 million

    Purchase of treasury stock - $1 million

    Net Cash flow from Financing activities $20 million
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