Financial Reporting and Analysis Q137
0. JFK Enterprises recorded the following for the year 2012:
| Purchase of equipment | $70,000 |
| Gain from sale of van | $8,000 |
| Receipts from sale of van | $18,000 |
| Dividends paid on ordinary share capital | $10,000 |
| Interest and preference dividend paid | $412,000 |
| Salaries paid | $40,000 |
Which of the following is most likely to be the net cash flow from investing
activities?
activities?
- Option : B
- Explanation : The investing activities include the purchase of equipment, and sale of the van. Gain from the sale of van is a part of net income. Dividends and interest paid are part of financing activities and salaries paid are part of operating activities. Therefore, net cash flow from investing is an outflow of $52,000.
