Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
ans in txt form

Transcribed Image Text:D&D Company reports select items from its statement of cash flows. Identify those items related to investing activities and compute
net cash flows from investing activities.
Activity
Cash paid to purchase property
Cash from selling merchandise
Cash paid for income taxes
Cash received from a long-term note
Cash paid to repurchase stock
O Cash received from sale of investments
Cash received from issuing equity shares
Cash paid to purchase merchandise
Cash paid to purchase investment securities
Cash paid in salaries and wages
Note: Cash outflows should be indicated by a minus sign.
Answer is complete but not entirely correct.
Amount
Activity
Cash from selling merchandise
Cash paid for income taxes
Cash paid to purchase merchandise
Cash paid in salaries and wages
Net cash flows from investing activities
****
688,000
135,000
710,000
410,000
$ 1,943,000
Amount
$ 400,000
688,000
135,000
850,000
100,000
40,000
500,000
710,000
50,000
410,000
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