Moses & Apple, Inc. has the following cash flow information: Payment of Operating...

Question:

Moses & Apple, Inc. has the following cash flow information:

Payment of Operating Expenses $48,000
Payment of Dividends 2,000
Repayment of Long Term Note Payable 5,000
Payment of Maintenance Expense 15,000
Purchase of Delivery Vehicle 25,000
??? of Delivery Vehicle 10,000
??? of Preferred Stock 60,000
????? of Interest Income 10,000
Cash Sales 100,000

What is the net cash flow from Investing Activities (parenthesis indicates negative number)?

a) ($25,000)

b) ($15,000)

c) $15,000

d) $10,000

e) ($5,000)

Cash Flow Statement:

Cash is the most liquid asset of a company, therefore, this account has its own financial statement - the cash flow statement. This FS is categorized into three major parts: Operating, Financing, and Investing. Company classifies its cash transactions into these three categories for ease of reference and understanding.

Answer and Explanation:

Sale of delivery vehicle 10,000
Purchase of delivery vehicle (25,000)
Cash used by investing activities (15,000)

The answer is b) ($15,000)


Learn more about this topic:

Loading...
Using the Statement of Cash Flows for Decision Making

from Accounting 101: Financial Accounting

Chapter 12 / Lesson 5
8.6K

Related to this Question

Explore our homework questions and answers library