Crocker Inc. had the following activity during 20X7: $$\begin{array} { | l | r | }
\hline \text { Proceeds from sale of bonds payable } & \$ 200,000 \
\hline \text { Loss from disposal of equipment (\$0 proceeds from disposal) } & \$ 38,000 \
\hline \text { Dividends paid to shareholders } & \$ 25,000 \
\hline \text { Sale of shares } & \$ 125,000 \
\hline \text { Gain on the sale of short term investments } & \$ 75,000 \
\hline
\end{array}$$ What is the cash flow from investing activities?
A) $57,000
B) $0
C) $93,000
D) $22,000

Question

Crocker Inc. had the following activity during 20X7: $$\begin{array} { | l | r | } 
\hline \text { Proceeds from sale of bonds payable } & \$ 200,000 \
\hline \text { Loss from disposal of equipment (\$0 proceeds from disposal) } & \$ 38,000 \
\hline \text { Dividends paid to shareholders } & \$ 25,000 \
\hline \text { Sale of shares } & \$ 125,000 \
\hline \text { Gain on the sale of short term investments } & \$ 75,000 \
\hline
\end{array}$$ What is the cash flow from investing activities?
A) $57,000
B) $0
C) $93,000
D) $22,000

Quizplus · Accepted Answer

Cash flow from investing activities includes the purchase and sale of long-term investments and property, plant, and equipment. In this scenario, only the loss from disposal of equipment ($38,000) directly relates to investing activities, but since there were $0 proceeds from the disposal, it does not affect the cash flow. The gain on the sale of short-term investments would affect investing activities, but it represents a gain, not the cash received from the sale. Without information on the cash received, we cannot determine the exact cash flow from this activity. Therefore, none of the listed activities directly indicate a cash inflow or outflow from investing activities as presented.

Crocker Inc What Is the Cash Flow from Investing Activities? A) $57,000

Crocker Inc What Is the Cash Flow from Investing Activities?
A) $57,000