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Milliken Company paid $2.2 million to purchase stock in another company, $1.0 million to repurchase treasury shares, $.5 million to buy short-term investments, sold used equipment for $.8 million when its book value was $.6 million, and purchased new equipment for $3.4 million. What was the net cash flow from investing activities

Respuesta :

Answer:

The net cash flow from investing activities was $5.3 million

Explanation:

In order to calculate the net cash flow from investing activities we would to make the calculation of the following formula:

net cash flow from investing activities=purchase stock in another company+short-term investments purchase-sold used equipment+purchased new equipment

net cash flow from investing activities=$2.2 million+$.5 milion-$.8 million+$3.4 million

net cash flow from investing activities=$5.3 million

The net cash flow from investing activities was $5.3 million

Parrain

Based on the various amounts spent by the company, we can calculate that the net cash from investing activities is -$4.8 million

Investing activities refer to all cash dealings that have to do with:

  • Fixed assets
  • Stock and investments from other companies

Short term investments are operating activities.

The net cash flow from investing is:

= Cash from sale of equipment - Purchase of new equipment - Purchase of stock

= 0.8 - 3.4 - 2.2

= -$4.8 million

In conclusion, the net cash from investing is -$4.8 million

Find out more about investing activities at https://brainly.com/question/25686945.

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