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12 March, 17:59

Cash sale of merchandise inventory. 2. Sale of delivery truck at book value. 3. Sale of Xanthe common stock for cash. 4. Issuance of a note payable to a bank for cash. 5. Sale of a security held as an available-for-sale investment. 6. Collection of loan receivable. How many of the above items will appear as a cash inflow from investing activities on a statement of cash flows for the current year

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  1. 12 March, 20:50
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    Answer and Explanation:

    As per the data given in the question,

    3 of the above items will appear as a cash inflow from investing activities.

    These are as follows:

    1. Collection of loan receivable.

    2. Cash sale of delivery truck at book value.

    3. Sale of a security held as an available-for-sale investment.

    Any gain or loss on sale of long term asset is an operating activity although any purchase or sale of a long term asset is come under the investing activities.

    Loan receivable is an asset too therefore, it will be shown under investing activities.
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