Question

Sammy's Pizza had the following financial information for the year as follows ($ in millions):

Net income $ 9,200
Obtain loan from the bank 4,600
Depreciation expense 1,800
Purchase equipment 5,400
Increase in accounts receivable 3,900
Pay dividends 2,200
Increase in salaries payable 1,700
Sale of land 3,500

Sammy's Pizza would report net cash inflows (outflows) from investing activities in the amount of:

Answer 1

Answer:

Net Cash flow from Investing activities -$1,900

Explanation:

Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash

Cash flow from Investing activities  

Purchase equipment - $5,400

Sale of land $3,500

Net Cash flow from Investing activities -$1,900

All other transactions are related to the operating and financing activities. Hence ignored it