Based on the following information, compute cash flows from investing activities under GAAP. Please show steps.
Cash collections from customers $ 770
Purchase of used equipment 185
Depreciation expense 185
Sale of investments 420
Dividends received 110
Interest received 185
Cash Flows from Investing Activities

Respuesta :

Cash inflows and outflows from long-term assets and direct investments in other businesses, such as stocks and bonds, are examples of investing activities.

Purchases of tangible assets, investments in securities, and sales of securities or assets are all examples of investing activities. If management is investing in the company's long-term health, negative cash flow from investments might not be a bad thing.

Equipment purchases (185)

Investment sales 420

Net cash flow from investing activities $235

All of the remaining items, including the dividends received, are regarded as cash flow from operating activities.

Purchases of tangible assets, investments in securities, and sales of securities or assets are all examples of investing activities. If management is investing in the company's long-term health, negative cash flow from investments might not be a bad thing.

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