The following events occurred last year at Taylor Company: Based on the above information,the net cash flows from investing activities for the year on the statement of cash flows would be
A)($15,000).
B)($21,000).
C)($7,000).
D)($37,000).

Question

The following events occurred last year at Taylor Company:  Based on the above information,the net cash flows from investing activities for the year on the statement of cash flows would be
A)($15,000). 
B)($21,000). 
C)($7,000). 
D)($37,000).

Quizplus · Accepted Answer

From the information given, we can see that Taylor Company purchased property, plant, and equipment for $36,000 during the year, but also sold property, plant, and equipment with a book value of $15,000 for $21,000. Therefore, the net cash outflow from investing activities is ($36,000 - $21,000) = ($15,000).

The Following Events Occurred Last Year at Taylor Company