Question
Asked Dec 21, 2018
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Based on the following information, compute cash flows from investing activities under GAAP.
Cash collections from customers $780
Purchase of used equipment
Depreciation expense
Sale of investments
Dividends received
Interest received
190
190
430
100
190
Cash Flows from Investing Activities
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Based on the following information, compute cash flows from investing activities under GAAP. Cash collections from customers $780 Purchase of used equipment Depreciation expense Sale of investments Dividends received Interest received 190 190 430 100 190 Cash Flows from Investing Activities

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Expert Answer

Step 1

Investing activities record the purchase and sale of fixed assets and investment and incomes received from such investment. Therefore, the point wisse discussion has been made as under:

* Cash collections from customer is a  part of operating activities.

*Purchase of equipment shall be considered as outflows from investing activities.

*Depreciation expenses is a non cash expenses nothing to be done in investing activities.

*Sales of investment is a part of investing activities as inflows.

*Dividend received is on investments made hence inflows from investing activities.

*Interest recieved is on investment made hence inflowws from investing activities.

 

Step 2

The cashflowws from investing activities has been made as under:

 

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