Jamestown Inc.reported the following information for 2011 and 2012: What was the amount of net cash flows from investing activities for 2012?
A)Cash inflow of $378,000.
B)Cash outflow of $391,000
C)Cash inflow of 7,000.
D)Cash outflow of $378,000.

Question

Jamestown Inc.reported the following information for 2011 and 2012:  What was the amount of net cash flows from investing activities for 2012?
A)Cash inflow of $378,000. 
B)Cash outflow of $391,000 
C)Cash inflow of 7,000. 
D)Cash outflow of $378,000.

Quizplus · Accepted Answer

The calculation for net cash flows from investing activities for 2012 is as follows:
Cash inflow from sale of investments = $60,000
Cash outflow for purchase of property, plant and equipment = $438,000
Net cash flows from investing activities = Cash inflow - Cash outflow = $60,000 - $438,000 = -$378,000 (Cash outflow)