Phibbs Company prepared the following data for the year. $\begin{array}{|l|r|}
\hline \text { Outflow to purchase treasury stock } &\$ \quad30,000 \
\hline \text {Inflow from sale of machinery } &7,500 \
\hline \text {Inflow from sale of marketable securities } &3,750 \
\hline \text {Outflow to purchase building } &87,500 \
\hline \text {Outflow to purchase land } &12,500 \
\hline \text {Outflow to pay dividends} &7,500 \
\hline \text {Outflow to pay interest} &37,500 \
\hline
\end{array}$ What is the net cash flow from investing activities?
A) $88,750 outflow
B) $141,250 outflow
C) $152,500 outflow
D) $41,250 outflow

Question

Phibbs Company prepared the following data for the year. $\begin{array}{|l|r|}
\hline  \text { Outflow to purchase treasury stock } &\$ \quad30,000 \
\hline  \text {Inflow from sale of machinery } &7,500 \
\hline  \text {Inflow from sale of marketable securities } &3,750 \
\hline  \text {Outflow to purchase building } &87,500 \
\hline  \text {Outflow to purchase land } &12,500 \
\hline  \text {Outflow to pay dividends} &7,500 \
\hline  \text {Outflow to pay interest} &37,500 \
\hline
\end{array}$ What is the net cash flow from investing activities?
A) $88,750 outflow
B) $141,250 outflow
C) $152,500 outflow
D) $41,250 outflow

Quizplus · Accepted Answer

The net cash flow from investing activities is calculated by subtracting the total cash outflows for investing activities from the total cash inflows. The relevant inflows are from the sale of machinery ($7,500) and marketable securities ($3,750), totaling $11,250. The relevant outflows are for the purchase of a building ($87,500) and land ($12,500), totaling $100,000. The net cash flow is $11,250 - $100,000 = $88,750 outflow.

Phibbs Company Prepared the Following Data for the Year What Is the Net Cash Flow from Investing Activities? A)

Phibbs Company Prepared the Following Data for the Year What Is the Net Cash Flow from Investing Activities?
A)