# Based on the following information: Cash collections from customers $860 Purchase of used... ## Question: Based on the following information: Cash collections from customers$860

Purchase of used equipment 320

Depreciation expense 212

Sale of investments 510

Purchase of investments $310 Dividends paid 1,320 Interest paid 460 Additional borrowing from bank 2,920 a.Calculate the maximum investing cash inflows that could be reported under IFRS. b.Calculate the maximum financing cash flows that could be reported under IFRS. ## Recording Items in Cash Flow Statements: In cash flow statements, the items are recorded as per their nature of activity. The classifications are operating, investing and financing activities. The combined balance of all three types of activities decide whether there is an inflow of cash or outflow. ## Answer and Explanation: a. Maximum investing cash flow will comprise of: Purchase of used equipment = ($320)

Sale of investments = $510 Purchase of investments =$310

Cash flow from Investing activity = ($120) b. Maximum financing cash flow: Dividends received =$160

Dividends paid = ($1,320) Additional borrowing from bank = ($2,920)

Cash flow from Financing activity = (\$4,080)