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Cornett Company reported the following information: cash received from the issuance of common stock, $150,000; cash received from the sale of equipment, $14,800; cash paid to purchase an investment, $20,000; cash paid to retire a note payable, $50,000; and cash collected from sales to customers, $225,000. What amount should Cornett report on its statement of cash flows as net cash flows provided/used by investing activities

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Answer:

The correct option is B,-$5,200 as found in the attached.

Explanation:

The net cash flows provided/used by investing activities are cash flows(both inflows and outflows) on assets that are capable of generating earnings directly or indirectly for the business.

By direct ,I mean assets that are used directly in the business to enhance the business earnings while indirect relates those that are not used in core business operations.

Cash flow from investing activities is computed:

Cash received from sale of equipment    $14,800

cash paid to purchase investment            ($20,000)

Cash flow used in investing activities       ($5,200)

The correct option is B as found in the attached .

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