DETERMINING NET CASH FLOW FROM INVESTING ACTIVITIES

The ABC Corporation reported the following information:

	January 1	December 31
Equipment	$68,000	$114,500
Accumulated depreciation	19,500	21,800
Investments (long-term)	76,000	47,000

In addition, ABC Corporation sold equipment costing $12,500 with accumulated depreciation of $9,000 for $6,500. ABC also reported a $5,000 loss on the sale of long-term investments.

Compute net cash flow from investing activities.

Required: Compute net cash flow from investing activities.

Cash Flow from Investing Activities:
Purchased equipment	$
Proceeds from sale of equipment
Proceeds from sale of investment
Net Cash Flow from Investing Activities	$

Answer rating: 100% (QA)

To compute the net cash flow from investing activities we need to consider the changes in equipmen... View the full answer