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HomeACCAFinancial AccountingStatement of Cash Flows › A firm reports investing inflows of $99,000 (lan…

A firm reports investing inflows of $99,000 (land) and $90,000 (investments) and an outflow of $161,000 (equipment). What is net cash flow from investing activities?

A$28,000 inflow
B$28,000 outflow
C$350,000 inflow
D$72,000 inflow
Answer & Solution
Correct answer: A. $28,000 inflow
1. Sum the inflows: $99,000 + $90,000 = $189,000. 2. Deduct the outflow: $189,000 − $161,000. 3. = $28,000, a net inflow (positive). _Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §7.2.3 "Investing Activities Section", p.274_
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