Carter Containers sold marketable securities, land, and common stock for $34.0 million, $10.0 million, and $45.0 million, respectively. Carter also purchased treasury stock, equipment, and a patent for $24.5 million, $21.0 million, and $11.5 million, respectively. What amount should Carter report as net cash from investing activities?

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Business

Pongo

29 July, 11:52

Carter Containers sold marketable securities, land, and common stock for $34.0 million, $10.0 million, and $45.0 million, respectively. Carter also purchased treasury stock, equipment, and a patent for $24.5 million, $21.0 million, and $11.5 million, respectively. What amount should Carter report as net cash from investing activities?

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Brennen Yang · Answer 1

Net Cash from investing activities: $'m

Sale of marketable securities 34.0

Sale of land 10.0

Purchase of treasury stock (24.5)

Purchase of equipment (21.0)

Purchase of patent (11.5)

Net cash from investing activities 13.0

Explanation:

Net cash from investing activities is the aggregate of sale of marketable securities and sale of land minus purchase of treasury stock minus purchase of equipment minus purchase of patent. Sale of common stock is not an investing activity but a financing activity because it impacts directly on shareholders' wealth.