CFA Practice Question

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CFA Practice Question

Assume GAAP.

Cash payments for interest: 15
Retirement of common stock: 38
Cash payments to merchandise suppliers: 85
Sale of equipment: 35
Payment of dividends: 38
Purchase of land: 10
Cash payment for salaries: 38
Cash collections from customers: 271
Purchase of equipment: 45

What are cash flows from investing activities?
A. -20
B. 0
C. 70
Explanation: Cash flows from investing activities = sale of equipment - purchase of land - purchase of equipment (35 - 10 - 45) = -20

User Contributed Comments 2

User Comment
achu PPE items are CFI not CFO.
homersimpson Interest paid ... operating cashflow
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