Utah Corporation reports the following data:
$\begin{array}{lll}&12/31/14&12/31/15\
\text { Fixed Assets } & \$ 330 & \$ 581 \
\text { Less: Accumulated Depreciation } &{(110)} &(127)\
\text { Net Fixed Assets } &{\$ 220}&{\$ 454} \
\end{array}$
Depreciation expense for the year ending December 31,2015 is $27.The company sold a fixed asset for $10 cash on December 1,2015.The cost of the fixed asset sold was $20 and the accumulated depreciation on the fixed asset sold was $10.What is the net cash flow from investing activities for the year ending December 31,2015?
A) $241 cash outflow
B) $251 cash outflow
C) $261 cash outflow
D) $271 cash outflow

Question

Quizplus · Accepted Answer

The net cash flow from investing activities is the sum of the cash flows from the sale of fixed assets and the purchase of fixed assets. The cash flow from the sale of fixed assets is $10, and the cash flow from the purchase of fixed assets is $251 ($581 - $330). Therefore, the net cash flow from investing activities is $261.

Utah Corporation Reports the Following Data Depreciation Expense for the Year Ending December 31,2015 Is $27