Lux Investing
What is the amount of cash flows from investing activities?
"Conrad Company reported revenues of $215,000.00 and net income of $60,000.00 for 2007. Cash generated by operations was $55,000.00 In addition Conrad Company borrowed $36,000.00 from the bank during 2007 Conrad bought new equipment for $30,000.00 cash and paid cash dividends of $20,000.00 to stockholders. what is the amount of cash flows from investing activities?"
Public Comments
- From investopedia: Cash flow from investing activities is "An item on the cash flow statement that reports the aggregate change in a company's cash position resulting from any gains (or losses) from investments in the financial markets and operating subsidiaries, and changes resulting from amounts spent on investments in capital assets such as plant and equipment. " This woud simply be the $30,000 that it paid in cash for the equipment, which is a capital investment. Make sure that you put it as -$30,000 though, since it is a cash outflow. Cash flow from financing activities would be $16,000, which is the $36,000 that it raised in debt minus the $20,000 that it paid as a cash dividend. Hope that helps.
