**Phibbs Company: Cash Flow Data for the Year**The following is the financial data prepared by Phibbs Company regarding cash flows for the year:- **Outflow to purchase treasury stock:** $50,000- **Inflow from sale of machinery:** $17,500- **Inflow from sale of marketable securities:** $6,250- **Outflow to purchase building:** $92,500- **Outflow to purchase land:** $17,500- **Outflow to pay dividends:** $12,500- **Outflow to pay interest:** $42,500**Question:**What is the net cash flow from investing activities?**Options:**1. $86,250 outflow2. $158,750 outflow

Answer to Question:- Net cash flow from investing activities:- $86,250 outflow. .............................................................................................................................................................................................................................................. Workings:- Cash Flow Statement:- Particulars Amount($) Cash Flow from Investing Activities Outflow to purchase building ($ 92,500) Outflow to purchase land ($ 17,500) Inflow from sale of Machinery $ 17,500 Inflow from sale of Marketable Securities $ 6,250 Cash Flow from Investing Activities ($ 86,250)Investing Activities: is a section of cash flow statement that shows the cash generated or spent relating to investment activities. Investment activities include purchase of physical assets, investment in securities, or sale of securities.

Business

Accounting

Phibbs Company prepared the following data for the year. Outflow to purchase treasury stock Inflow from sale of machinery Inflow from sale of marketable securities Outflow to purchase building Outflow to purchase land Outflow to pay dividends Outflow to pay interest What is the net cash flow from investing activities? $50,000 17,500 6,250 92,500 17,500 12,500 42,500

Phibbs Company prepared the following data for the year. Outflow to purchase treasury stock Inflow from sale of machinery Inflow from sale of marketable securities Outflow to purchase building Outflow to purchase land Outflow to pay dividends Outflow to pay interest What is the net cash flow from investing activities? $50,000 17,500 6,250 92,500 17,500 12,500 42,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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