Financial Reporting and Analysis Q129
0. A company recorded the following events in 2012:
| Purchase of securities for trading purposes | $250,000 |
| Proceeds from the sale of trading securities | $300,000 |
| Proceeds from issuance of bonds | $500,000 |
| Purchase of 30% of the shares of an affiliated company | $375,000 |
On the 2012 statement of cash flows, the company’s net cash flow from
investing activities (in USD‘000s) is closest to:
investing activities (in USD‘000s) is closest to:
- Option : A
- Explanation : Only the cash flows for the purchase of the shares in an affiliated company are cash from investing activities. Therefore, the net amount is -$375,000. Cash flows from trading securities are operating activities.
