Financial Reporting and Analysis Q135
0. MNC Corporation recorded the following events in 2011:
| Purchase of securities for trading purposes | $480,000 |
| Proceeds from the sale of trading securities | 600,000 |
| Proceeds from issuance of bonds | 1,000,000 |
| Purchase of 30% of the shares of an affiliated company | 550,000 |
On the 2012 statement of cash flows, MNC’s net cash flow from investing activities is closest to:
- Option : B
- Explanation : Cash flows for the purchase of the shares in an affiliated company are cash from investing activities, therefore the net amount is -$550,000. Proceeds from issuance of bonds are financing activities. Cash flows from trading securities are operating activities.
